Telecom giant Vodafone and Idea have announced their merger turning the combined entity into the biggest telecom firm. According to the initial reports, Vodafone will own 45.1 per cent in the combined entity while Birla’s will own 26 per cent. Both can appoint 3 directors each. This merger will stand against Reliance Jio which is slowly making some space for itself in the market.

Earlier, Vodafone said in a statement had said, “Vodafone confirms that it is in discussions with the Aditya Birla Group about an all-share merger of Vodafone India and Idea.”

A merger between the two companies will take the combined entity to the number one position in India in terms of subscribers at 387 million. With a merger, Vodafone-Idea combined would have a 43 per cent revenue market share.

According to news agency IANS, Kumar Mangalam Birla, Chairman, Aditya Birla Group said ‘for Idea shareholders and lenders who have supported us thus far, this transaction is highly accretive, and Idea and Vodafone will together create a very valuable company given our complementary strength.”

Vittorio Colao, Chief Executive, Vodafone Group Plc. said, “the combination of Vodafone India and Idea will create a new champion of Digital India founded with a long-term commitment and vision to bring world-class 4G networks to villages, towns and cities across India.”


As per the reports published in a global brokerage firm, CLSA (Credit Lyonnais Securities Asia) on January 18 said, “the merger would help Vodafone India improve its positioning in market, while Idea Cellular would gain from Vodafone’s strength in metro circles.”