RCOM gets CCI approval for Aircel merger

Posted on:21 Mar 2017 09:47:59
RCOM gets CCI approval for Aircel merger
21 March 2017 Current Affairs: Reliance Communications has received approval of the Competition Commission of India (CCI) for the demerger of its wireless division into Aircel Ltd and Dishnet Wireless Ltd. 

Reliance Communications Ltd has received an approval of the Competition Commission of India (CCI) for the proposed Scheme of Arrangement for demerger of the Wireless division of the company into Aircel Ltd and Dishnet Wireless Ltd 

Reliance Communications and Aircel in September last year announced the merger of their wireless operations to create a combined entity with assets worth Rs 65,000 crore. 

Post closing, the company and the present shareholders of Aircel Ltd will hold 50 per cent each in Aircel Ltd 

The company has already received approval from the Securities and Exchange Board of India (Sebi), stock exchanges BSE and NSE for the deal and has filed an application with the National Company Law Tribunal (NCLT) for the same. 

The transaction will reduce RCom's debt by Rs 20,000 crore (USD 3 billion), while Aircel's debt would go down by Rs 4,000 crore (USD 600 million) on closing in 2017, the two companies had said last year. 

Both the companies will transfer Rs 14,000 crore of debt each to the joint venture, taking the total debt of the new company to Rs 28,000 crore. 

The Competition Commission of India's nod to RCom and Aircel merger comes amid a massive consolidation drive in the telecom sector, intensified by the disruptive entry of newcomer Reliance Jio. 

Earlier today the board of Idea Cellular approved its amalgamation with telecom operator Vodafone India and Vodafone Mobile Services, to create the country's largest telecom service provider. 

Monthly Current Affairs

Current Affairs Section

Daily Current Affairs Quiz

Subscribe to Current Affairs

Enter your email to get daily current affairs

Current Affairs 2018 July

16 JULY
NEWS
15 JULY
NEWS
14 JULY
NEWS
13 JULY
NEWS

Current Affairs 2018 June

30 JUNE
NEWS
29 JUNE
NEWS
28 JUNE
NEWS
27 JUNE
NEWS

Current Affairs 2018 May

31 MAY
NEWS
30 MAY
NEWS
29 MAY
NEWS
28 MAY
NEWS