Reliance Communications partnered with Aircel in India telecom sector
Reliance communications
merges with Aircel for wireless business to become the strongest operator in
telecom
India: Reliance communications (RCom) signed
an agreement with Malaysia’s Maxis communication Berhad(MCB), Aircel’s parent,
for merging wireless business making it the largest consolidation ever in
Indian telecom sector.
The
merger will create a strong operator clearly ranked amongst India top 3rd
telcos in terms of customer base and revenues, the combination of the telecom
companies would be 50:50 joint venture. It will also create a substantial long
term value for shareholder of both RCom & MCB with significant revenue and
cost synergies.
The
merge entity will lead in 12 circles giving a tough competition to Kumar Mangalam
led Idea Cellular, which is getting squeezed from both ends with the launch of
Reliance Jio and this merger. On completion of merger RCom & MCB they are
committed to adding more equity for further strengthening the balance sheet and
enhance financial flexibility.
TechSci
Research depicts that the merger will help both telecom giants to hold a good
market share in terms of customer and revenue base. The merger based company
will have the second largest spectrum holding amongst all operators.
