We could soon be seeing Vodafone and Idea Cellular shake hands with each other for an all- share deal as Vodafone, on Monday revealed that it has started talks to merge its Indian operations with rivals Idea Cellular to counter the fierce competition in the market.
In a brief statement, Vodafone said that it has approached with Idea's parent, conglomerate Aditya Birla to establish the merger, which, it said, would involve Idea issuing new shares to Vodafone. They further added that this would result in Vodafone deconsolidating Vodafone India.
Beside, the merger between Idea and Vodafone could prove to be a threat for Airtel and Jio in the ongoing telecom game which began when Reliance Jio took the telecom industry with storm with its groundbreaking entry.
Currently, the subscriber count for Airtel and Jio stands at 27 crore and 7.2 crore respectively. The Vodafone- Idea merger, if it were to happen, would result in a combined subscriber count of about 39 crore, thus making it number one in the Indian telecom industry.
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