India clears Xavier Niel's Vodafone stake purchase and three other deals

what happened

The Competition Commission of India (CCI) approved four corporate transactions on Friday, according to Moody's. The largest is the purchase by French billionaire Xavier Niel of a 16.2% stake in UK-based Vodafone Group for 5.1 billion euros.

The deal is executed by Vega SAS, a French holding company that belongs to Maya SAS, Niel's family investment vehicle. Vega SAS is buying the stake from Emirates Telecommunications Group under an agreement first announced in July. After completion, it will be Vodafone's single largest shareholder. Clearance was needed because Vodafone operates in India through its joint venture Vodafone Idea, even though Vega SAS has no business there.

The CCI also approved MIH Payments Holdings BV, a Prosus subsidiary, acquiring a stake in Navi, Aditya Birla Renewables buying Solenergi Power from Shell, and Adani Energy Solutions taking over IntelliSmart Infrastructure.

why it matters

For markets, the key point is that one condition of a large Vodafone deal has been met while the company restructures its European and African operations, including the sale of its Spanish and Italian businesses and a UK network merger. The Indian decision mainly concerns the company's domestic business.

market impact

Vodafone shares: one regulatory hurdle to the change of its largest shareholder has been removed

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