The merger of Idea Cellular and Vodafone India has been completed making it the largest mobile service provider in India with over 408 million subscribers and more than 32 percent of market share.
Kumar Mangalam Birla will be the Chairman of the merged identity while Balesh Rao has been appointed as the CEO.
The Idea-Vodafone merger has replaced Bharati Airtel from the top spot with 344 million subscribers followed by Reliance Jio with over 215 million users in July 2018.
Kumar Mangalam Birla, Chairman Aditya Birla Group and Vodafone Idea Limited, said, “Today, we have created India’s leading telecom operator. It is truly a historic moment. And this is much more than just about creating a large business. As Vodafone Idea, we are partnering in this initiative by building a formidable company of international repute, scale and standards.”
This merger is expected to generate Rs 140 billion annually, including opex synergies of Rs 84 billion, equivalent to a net present value of approximately Rs 700 billion.
Vodafone will have 45.1 percent stake in the combined entity, while Aditya Birla Group will have 26 percent and Idea shareholders 28.9 percent.