UK phone giant Vodafone has finally secured a 67 per cent controlling stake in Indian operator Hutchison Essar for $11.1bn.
Vodafone, the world's largest mobile phone company by revenue, said the deal would give it access to the world's fastest growing mobile phone market.
India has over 70 million mobile subscribers and the market is growing by around 6.5 million users every month.
Hutchison Essar, India's fourth-largest mobile phone firm, holds a 16 per cent share of the Indian market.
The Essar Group owns the remaining 33 per cent of the company.
Arun Sarin, the chief executive of Vodafone, said "We are delighted to be deepening our involvement in the Indian mobile market with the full range of Vodafone's products, services and brand.
"This announcement is clear evidence of how we are executing our strategy of developing our presence in emerging markets.
"We have concluded this transaction within our stated financial investment criteria and we are confident that this will prove to be an excellent investment for our shareholders.
"Hutch Essar is an impressive, well run company that will fit well into the Vodafone Group."
The deal, which is Vodafone's third-biggest ever, pushed the company's shares up 2.5 per cent in early morning trading in London on Monday.
Vodafone beat off strong competition from rival bidders Hinduja Group and Reliance Communications to secure the 67 per cent stake.
John Bond, chairman of Vodafone, added: "India is destined to become one of the largest and most important mobile markets in the world and this acquisition will enable our shareholders to benefit from our increased investment in this market.
"We also look forward to playing our part in delivering the significant economic and social benefits which mobile telephony can bring to the people of India."
Back in 2000, Vodafone bought Germany's Mannesmann for $234bn, the biggest takeover in corporate history.
Last month, Vodafone said group revenue in the three months to December 31 rose by 5.1 per cent from a year earlier.
The firm also increased its customer base by 8.7 million subscribers to 198.6 million worldwide during the third quarter.
Looking ahead, Vodafone said it expects annual mobile revenue growth of between 5 per cent and 6.5 per cent.
source:www.999today.com
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