RCom Inches Towards Aircel Merger; Gets Approval from Competition Commission of India (CCI)

RCom, the Anil Ambani-led telecommunications operator, is inching towards combining their cellular operations with Aircel. RCom has announced that they received approval from the Competition Commission of India (CCI) for the proposed Scheme of Arrangement for demerger of the Wireless division of the Company into Aircel and Dishnet Wireless Limited.

rcom-aircel

To recall, RCom has already received approval from the Securities and Exchange Board of India (SEBI), BSE Limited (BSE) and National Stock Exchange of India (NSE) for the proposed Scheme of Arrangement. RCom also filed an application with National Company Law Tribunal (NCLT), Mumbai Bench, for approval of the said Scheme.

The proposed transaction is subject to other necessary approvals. Post closing, the company and the present shareholders of Aircel Limited will hold 50 percent each of the combined entity.

RCom entered into a merger deal with Aircel in September last year to merge its wireless business with the latter’s wireless operations to create a new entity with assets worth Rs. 65,000 crore. With the merger, we will have our new fourth largest telecom operator both by subscribers and revenues in India.

Further, the RCom-Aircel merged entity will have the second-largest spectrum among all the players in the country. The combined entity will aggregate 448MHz across 850MHz, 900MHz, 1800MHz, and 2100MHz spectrum bands.

RCom also confirmed a merger with MTS India which is expected to be completed by the end of March. However, there are no details on this merger yet.

The Aircel merger is supposed to be completed by October 2017. Additionally, some rumors indicate that Tata Teleservices in talks to join the entity of RCom-Aircel-MTS. Reportedly, Tata Teleservices was not able to take up the pressure created by Reliance Jio and wants to merge with RCom. It was also said that Anil Ambani had approached the Tata Sons Chairman, N Chandrasekaran for a possible merger.

If the rumors are believed to be true, the RCom-Aircel-MTS-Tata Tele entity would have revenue market share of over 18 percent as compared to Airtel’s 31 percent share. Earlier today, Idea Cellular has confirmed the merger with Vodafone India. Needless to say, the merged entity will become India’s leading telecom operator.

Passionately following the Indian #Telecom Industry for over a decade from Business, Consumer and a Technical perspective. My primary focus area is Consumer & Digital Experience.

guest
19 Comments
newest
oldest most voted
Inline Feedbacks
View all comments

Recent Posts

Samsung Galaxy S20 FE With Snapdragon 865 and 120Hz AMOLED Screen Goes Official

Expanding the Galaxy S20 lineup, South Korean smartphone brand, Samsung officially launched the Galaxy S20 FE (Fan Edition) with flagship...

Reliance Jio Might Release $50 Smartphone to Rival Chinese Brands

In the Reliance Industries Ltd AGM 2020, the company announced that its subsidiary Jio is partnering up with Google to...

Android 11 for Android TV Focuses on Performance, Privacy Improvements

Google on Tuesday announced the launch of Android 11 update for Android TV focusing on enhancements to privacy and performance....