The Competition Commission of India (CCI) has cleared the proposal of French telecom billionaire Xavier Niel to acquire a 16.2 per cent stake in Vodafone Group Plc, news agency PTI reported. The acquisition will be made through Vega SAS, Niel's family investment vehicle.
Source: PTI via CNBC-TV18
In its release on Friday, the CCI said the proposed combination envisages the acquisition of 16.2 per cent of the issued share capital of Vodafone Group Plc by Vega SAS. Vega SAS is a wholly-owned subsidiary of Maya SAS, a simplified stock company incorporated under French law, and is controlled by Niel, the founder of French telecom firm Iliad.
Vega SAS is buying the stake from Emirates Telecommunications Group Co PJSC (e&), under a binding agreement first announced in July, for a total cash consideration of around £4.4 billion (about €5.1 billion), Business Standard reported. Once the transaction closes, Vega SAS will become the single largest shareholder in Vodafone Group.
Source: Business Standard
Why an Indian regulator had to clear a UK deal
Vega SAS has no business presence or activity in India. But Vodafone Group provides mobile and fixed services in India through Vodafone Idea Ltd, so the global transaction crossed the thresholds that require clearance from India's competition watchdog, which examines deals for their possible effect on competition in Indian markets.
The Vodafone clearance was one of four transactions the CCI approved on Friday, alongside deals involving fintech firm Navi, Aditya Birla Renewables and Adani Energy Solutions. The regulator has said detailed orders on the approvals will be issued separately.
The CCI clearance removes a key regulatory step, but the stake purchase itself will be completed only when the transaction between Vega SAS and e& formally closes. The deal does not directly change Vodafone Idea's shareholding in India.