Britain’s Vodafone confirmed on Monday it was in talks to merge its Indian subsidiary with local rival Idea Cellular in an all-share deal that would create a new market leader better able to contest a brutal new price war.
Vodafone, the world’s second-largest cellphone networks operator, has endured a tumultuous ride since it entered India in 2007, with price wars and a high-profile tax battle making the market Vodafone’s most unpredictable territory by far.
Last year the market was thrown into turmoil again with the arrival of new competition from Reliance Jio Infocomm, which is backed by India’s richest businessman Mukesh Ambani.
Jio has made an immediate impact with the launch of free calls and cut-price data, forcing the three biggest operators—Bharti Airtel, Vodafone and Idea—to slash prices and accept lower profits.
“There is no certainty that any transaction will be agreed, nor as to the terms or timing of any transaction,” Vodafone said in a statement on Monday.
Full Content: Fortune
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