New Delhi : The Competition Commission on Monday approved the merger of Vodafone India and Idea Cellular, said lawyers who worked on the deal, which will create the country’s largest telecom operator.
Shardul Amarchand Mangaldas and Co said the regulator has “unconditionally” approved merger of the telecommunications businesses of Vodafone India and its wholly-owned subsidiary Vodafone Mobile Services, with Idea Cellular. “The $ 23 billion transaction is the largest transaction by value in the history of Indian M&A,” it said in a statement. Shardul Amarchand Mangaldas and Co advised Vodafone India and Vodafone Mobile Services on the deal.
According to the statement, the regulator carried out a comprehensive review of the transaction and concluded that there was no appreciable adverse effect on competition from the proposed merger.
“The CCI approval, within Phase 1, is a very welcome development for both the Indian M&A landscape and the telecom sector, and will serve to fuel more investment in capacity and coverage across a battling telecom sector in India,” Shweta Shroff Chopra, Partner at Shardul Amarchand Mangaldas, said.
Phase 1 refers to the deal being approved within 30 working days as provided by the Competition Act. Law firm Trilegal, which advised Idea Cellular on the competition law aspects, said the deal with Vodafone India has received CCI approval.
“The proposed merger involved a merger of two of the biggest telecom companies in India and will create the largest telecom player in India, creating significant efficiencies and synergies,” Trilegal said in a separate statement.
