NCLT approves merger of Vodafone and Idea

Ahmedabad Jan 12: A major hurdle has been cleared for India's No 2 and No 3 telecom companies.NCLT has approved the merger of Idea Cellular and Vodafone.

Idea Cellular in a regulatory filing has said that "We wish to inform you that the Hon'ble National Company Law Tribunal, bench at Ahmedabad, vide its order dated January 11, 2018, has sanctioned the composite scheme of amalgamation and arrangement among Vodafone Mobile Services Limited and Vodafone India Limited and Idea Cellular Limited."

Sources said that the merger would take place after few more approvals such as NCLTs nod for Vodafone appeal and the final Approval from Department of Telecom.

Earlier both the companies in 2017 have announced their merger after the entry of Jio to consolidate profits and to eliminate duplication in towers and spectrum.

Under the newly formed company, Vodafone is expected to hold around 47.5 percent stake in the merged entity and rest will be owned by Idea and promoter Aditya Birla Group.