An Analysis Of The Vodafone-Idea Merger: An Insight Into The Provisions And Mechanisms Applicable To A Combination
- IJLLR Journal
- 6 days ago
- 1 min read
Roshini Arun Kumar, Christ (Deemed to be) University
ABSTRACT
In the year of 2017, India saw a merger that shook the very essence of the telecom sector. The Vodafone India and Idea Cellular Limited (India) merger brought about other changes than just the rebranding that stands revolutionary today. The merged entity, would, at the time stand to become the largest wireless carrier in India, with about 400 million subscribers. Before this shift that would surely impact the relevant marker, these two companies were the second and third largest competitors in the Indian telecom market, in terms of number of subscribers. This important strategic move was particularly because of the aggressive entry of a new player, Reliance Jio Infocom Limited (Jio) which took the market by storm. Many know this player as a conglomerate that operates somewhat like a mogul in the business industry, acquiring and dominating any market it is an entrant to. A strategic plan was required at this point, for both Vodafone and Idea to continue being dominant in their industry and shake the predatory pricing strategy that Jio had equipped. Although this is an analysis on an event from roughly 8 years ago, the impact of this merger is what this paper seeks to analyse to get an idea as to what the benefits or effects of a merger are. It evolves from the question; Why not a joint venture? What is the role of synergy that seeks to evolve a merger? This chapter however also aims to criticise certain aspects of the merger and the hurdles that both brands that used to compete had to overcome to ensure common understanding.
