BANKING AFFAIRS

Detailed explanation-1: -Aditya Birla Group on Friday said that Vodafone India and Idea Cellular have completed the merger to create the countey’s largest telecom company with 408 million active subscribers and a revenue market share of 32.2%.

Detailed explanation-2: -The merger created the largest telecom company in India by subscribers and by revenue. Under the terms of the deal, the Vodafone Group holds a 45.2% stake in the combined entity, the Aditya Birla Group holds 26% and the remaining shares will be held by the public.

Detailed explanation-3: -Conclusion. The merger between Idea and Vodafone will make them a top player. For the benefit of co-operative management, synergies of up to INR 670 billion can be acquired & INR 140 billion on operating costs for 4th year. It will also bring credit for the sale of Towers Assets to a consolidated business.

Detailed explanation-4: -The trigger for the merger was the crippling effect on the finances of the older telecom players after Mukesh Ambani re-entered the mobile business in September 2016 with highlyaggressive tariffs and free voice.

Detailed explanation-5: -Reason for the merger It was a horizontal merger amongst the two biggest players in the telecom industry. This merger deal was worth $23 billion.