The merger of Vodafone and Idea, currently holding India’s top 2 and 3rd rank positioned telecom companies, respectively is yet to be approved.
This much awaited merging is likely to get go-ahead after the approval from DoT (departmental of telecommunications) on Monday.
Vodafone India and Idea Cellular merging entity will be known to be Vodafone Idea Ltd, as announced on June 2, 2018.
For the merger, the companies first approached the approval of Competition Commission of India (CCI).
The merged entity is expected to be a $23 billion entity with nearly 35 percent market share.
However, the proposal has yet to be approved in an extraordinary general meeting that will be held on June 26.
The meeting will also pass a resolution seeking permission to raise Rs. 15,000 crore.
On July 24, last year the CCI gave its approval to the merger of two telecom companies. The merging of Vodafone and Idea happening soon.
The Vodafone Idea merger has already been given a green signal by Competition Commission of India (CCI), markets regulator Securities Exchange Board of India (SEBI), and also by the National Companies Law Tribunal (NCLT).
On March 22, both the companies announced that Vodafone’s chief operating officer Balesh Sharma will be appointed as the CEO of the merged entity (i.e. Vodafone Idea Ltd).
Kumar Mangalam Birla will be the non-executive chairman of the merged company.
Over 99 percent of Idea shareholders voted in favor of the merger at the shareholders’ meeting held on October 12, 2017, as stated by Kumar Mangalam Birla.
Once the deal goes through final point, Vodafone will own 45.1 percent stake in the merged entity, while Idea Cellular will have a 26 percent stake.
The merging of Vodafone and Idea would aim to unseat Bharti Airtel to grab the top slot.