Idea Cellular and Vodafone have jointly filed for the approval for their impending merger at the Competition Commission of India and exchanges to take the process forward.
In March, Vodafone Group Plc and Idea Cellular announced an agreement to combine their operations in India (excluding Vodafone’s 42% stake in Indus Towers) to create India’s largest telecom operator.
“Vodafone & Idea have initiated necessary steps to obtain regulatory approvals. A joint merger notification has been filed with the ‘Competition Commission of India’ (CCI) and the Scheme of Arrangement has been filled with SEBI & Stock Exchanges for their approvals”, Idea Cellular said today.
The combined company would become the leading communication provider in India with 400 million customers, 35% Customer Market Share and 41% Revenue Market Share which is based on Q3 FY17 data of TRAI.
CCI will have to check if the merged entity is creating a dominance market monopoly position to weed out competition , then it may intervene to stop any such merger.