Anil Ambani-led Reliance Communications (RCom) is set to merge its wireless business with Aircel Ltd, marking the largest-ever consolidation in the Indian telecom sector.
Outcome of the Merger
RCom and Maxis Communications Berhad (MCB), the largest shareholder in Aircel, will each hold 50 per cent in the joint venture into which the two businesses would be merged, forming the 4th largest telecom operator, by revenue, in the country.
The new entity will be one of India’s largest private sector companies, with an asset base of over Rs. 65,000 crore and net worth of Rs. 35,000 crore.
On the basis of subscribers, the merged entity would have about 200 million users, ahead of Idea Cellular’s 167 million.