French billionaire Xavier Niel gets CCI nod for 16.2% Vodafone Group stake

"The proposed combination envisages acquisition of 16.2 per cent of the issued share capital in Vodafone Group Plc (target) by Vega SAS (acquirer)," the Competition Commission of India (CCI) said in a release on Friday. Vega does not have any business operations or commercial presence in India. Vodafone, however, provides fixed-line and mobile telecom services in the country through Vodafone Idea Ltd.

Xavier Niel's Vodafone stake acquisition: Deal details The proposed transaction involves the purchase of the stake from Emirates Telecommunications Group Co PJSC, also known as e&, for a cash consideration of around 4.4 billion pounds, equivalent to approximately 5.1 billion euros. In July, Vega announced that it had signed a binding agreement with the UAE-based telecom group to acquire around 16.2% of Vodafone's issued share capital.

Vega was set up specifically to hold shares in Vodafone. Once the transaction is completed, it is expected to become the British telecom group's largest shareholder. The acquisition is part of a broader period of restructuring at Vodafone. In recent years, the company has sold its businesses in Italy and Spain and exited its 50% stake in a Dutch joint venture. It has also merged with Three UK to create the country's largest mobile operator.

Why did the Vodafone deal require CCI approval? The CCI examines transactions that cross specified financial thresholds to assess whether they could adversely affect competition in the market. Its approval is required for combinations covered under India's competition law. The regulator also oversees business practices to prevent anti-competitive conduct and promote fair competition in the marketplace. 2 per cent of the issued share capital in Vodafone Group PLC by Vega SAS."