Wednesday, 14 February 2007

Vodafone Acquires 67% of Hutchison Essar

Britain's Vodafone Group has agreed to buy a 67 per cent controlling interest in Hutchison Essar, one of India's cell phone companies, for USD 11.1 billion, Vodafone said in a statement.

Hutchison Telecommunications International—a holding company of Hong Kong based Hutchison Whampoa—agreed to sell its stake following a meeting to assess competing bids.

"India is destined to become one of the largest and most important mobile markets in the world and this acquisition will enable our shareholders to benefit from our increased investment in this market," said Vodafone Chairman John Bond when making the announcement.

Analysts said the pricing was at the top of the range for the asset and India would need to continue to demonstrate high-growth rates for Vodafone to earn a return.