Reasons for the Merger:

 The main reason for the Vodafone-Idea merger was to tackle the rising
dominance of Reliance Jio in the Indian sector.
 This will result in a brutal price war between all the major companies in
this sector.
 While merging companies are typically quite confident about their
synergy benefits, most analysts agree the Vodafone-Idea merger holds the
potential for significant cost savings. With a larger scale and elimination
of duplicate ‘margins can rise substantially.
 The combined entity became the largest cellular services operator in
prominent circles.
 In a couple of circles, it will upstage BhartiAirtel as the number one
operator while in some other circles, it will graduate to a strong No. 2.
 It remains to be seen that if the combined entity will retain a half-hearted
presence in the relatively smaller circles, or whether it will up the ante
and aim for a strong Pan-India focus.
 The spectrum of Idea in two circles while Vodafone India in seven
circles, whose permits are valid till 2021-22, is together valued at around
Rs 12,000 cr as per the last auction price.
 These permits with Vodafone India and Idea are not in common circles
hence there could be potential spectrum capital expenditure synergies
between the companies.
 Beforethemerger,amarketsharesofl8.l6%ofvodafonelndiawith20,46,g0,00
0customersandamarketshare of16.good of Idea Cellular Ltd with
19,05,10,000 customers was surveyed"
 The merger of Vodafone India and Idea Cellular has boosted market
share to 35% which has made it the country's largest telecom operation
leaving the Bharti Airtel off its opposition.

Specific about the merger:

 The merger includes different percentages of shares for Vodafone and

Idea while the rest belongs to the public shareholders-Approximately'
Vodafone will have " of shares of the joint venture after passing the
ownership of 4.9%to Aditya Birla Group for 3'900 crore post the
completion of the merger.
  The requisites for the merger were that it required approval from both the
telecom service providers for the appointment of CEO and coo.
 The chairman of the merged entity would be Kumar Mangalam Birla and
chief financial officer would be appointed Vodafone".
 From a total of 12 member. of the Board, 3members each would be
nominated by the promoters, and the rest of the members would be
independent.
 Vodafone India and Idea Cellular Ltd made completed and the joint
venture was renamed as Vodafone idea ltd.

Corporate governance:

 Corporate Governance refers to mechanisms, processes and relations by

which corporations are controlled and directed.
 The essence of Corporate Governance lies in promoting and maintaining
integrity, transparency and accountability across all business practices.
 Corporate Governance essentially involves balancing the interests of a
company’s stakeholders, such as shareholders, management, customers,
suppliers, financiers, government, and the community.
 Corporate Governance has always been intrinsic to the management of
the business and affairs of our Company. Pursuant to the merger of
Vodafone India Limited and Vodafone Mobile Services Limited with
your Company, the Company has continued to inculcate, imbibe, and
perpetuate governance tenets.
 Corporate Governance in VIL is a reflection of principles entrenched in
our values and policies, leading to value-driven growth. At VIL ensuring
fairness, transparency, and accountability across all business processes is
of utmost importance.
 We believe that good governance practices stem from the culture and
mindset of the organization.
 While making business decisions our objective is to meet stakeholders’
interests and societal expectations.
 We at VIL are committed to fostering and sustaining a culture that
integrates all components of good governance and demonstrates the
highest standard of ethical and responsible business conduct.
Conclusion:

Vodafone has clearly made its Indian operations subservient to its global goals.
The world’s second-largest company has invested circa £19 billion over the last
three years to increase its coverage in the United Kingdom as part of its ‘Project
Spring program’.Vodafone has also immersed itself neck-deep in the fixed-line
service market in Europe.

Vodafone’s forays in the UK and the rest of Europe and its deconsolidation of
its Indian subsidiary clearly indicate that after aborted IPOs, two write-downs,
and a pending humongous retrospective tax liability, the telecom giant has
initiated the final countdown in India. It is undeniable that the deal is necessary
for both parties after the competitive pricing onslaught brought on by Jio.
However, when a corporate marriage is a response to an outside threat and
global financial concerns, the scope for adverse consequences for the parties
involved are much higher.

A major beneficiary of consolidation in the sector and the merger of Vodafone

and Idea operations is the consumer as the three top players (Bharti Airtel, Idea-
Vodafone and Reliance Jio) will bring in best technology at best prices to retain
customers in a sector where brand loyalty has been diluted by Mobile Number
Portability

Vodafone and Idea hope to collaborate with other investors in implementing

their plans for the future so that they can limit exposure and maximise
synergistic capabilities. Only time will tell how much of their hopes and plans
will materialise into realities in the coming future