Indian regulator approves Xavier Niel's bid for 16.2% of Vodafone

what happened

According to TradingView, citing the news agency PTI, India's Competition Commission has given the green light to a plan by French entrepreneur Xavier Niel, founder of the telecom operator Iliad, to buy a 16.2% holding in Vodafone Group Plc.

The purchase will go through Vega SAS, a family investment vehicle wholly owned by Maya SAS, a French simplified joint-stock company. In a statement on Friday, the regulator said Vega has no business or operations in India, while Vodafone provides fixed and mobile services there through Vodafone India. The commission also posted the decision on X.

In July, Vega signed a binding agreement with Emirates Telecommunications Group to acquire the holding for roughly £4.4 billion in cash. Once the deal closes, Vega, which was set up solely to hold Vodafone shares, will become the company's largest shareholder.

why it matters

The Indian approval removes one step from the process for a deal that would make a new entity the biggest holder of Vodafone. For investors, this signals a change in the major shareholder rather than a change in the company's operations.

market impact

Vodafone shares: the Indian approval removes one regulatory hurdle for a large new holder

• ▲Vodafone shares pressure up — regulatory clearance lowers the risk that the large stake purchase falls through

tags

instruments