Vodafone and Idea Cellular today officially confirmed the merger of two companies. The merged entity will be the largest telecom company in India with more than 395 million customers.
Before this merger, Vodafone and Idea were the second and third largest telecom players respectively, while Bharti Airtel was number one. The companies are yet to decide on a new name for the merged entity. The companies stated that the name of the combined listed company will be changed in due course.
According to the statement from Idea, Vodafone will hold a 45.1 per cent in the newly merged entity, Idea's promoters will hold 26 per cent .The merged entity will reduce its operational cost by removing the duplication of network maintenance costs and other marketing expenses.