Vodafone, Idea Cellular Exploring Merger?

In what could be the biggest deal in a long time in the telecom space, Idea Cellular and Vodafone are in ‘exploratory’ talks for a possible merger, reported CNBC-TV 18.

Vodafone India and Idea Cellular may be engaged in talks that may lead to a potential merger between the two telecom companies, if the merger comes through it would create India’s largest telecom company in terms of market share.

According to the sources, Vodafone has been planning for an IPO worth $11 billion and Idea Cellular is reported to be valued at around $5 billion. If the two companies do come together then it will create a telecom entity with a market cap of over $16 billion. If the deal gets through, then Vodafone need not to bring in its much talked IPO as Idea Cellular is already listed.

Idea Cellular's shares surged over 7 per cent on the news. The news of the merger comes at a time when the telecom sector is witnessing a raging war over the entry of Mukesh Ambani-led Reliance Industries’ Jio.