Maxis Communications acquires Aircel Ltd

Maxis Communications is the Malaysia’s biggest mobile phone company and they have just announced plans to take over the Indian mobile service provider Aircel Ltd. The deal is worth close to $1.08 billion and the aim is to expand their operations in the market, which is expected to quadruple in four years. As per this deal, Maxis will control 74 percent of Aircel to comply with the government of India policies.

The Reddy family that runs the Apollo Hospitals Enterprises Ltd. would own the rest of the share in the company. They happen to be the India’s biggest health-care company and this foray would bring more variety to their business interests. This is also the second overseas investment from the Maxis Communications. The deal is also the biggest by a Malaysian company in India.

Maxis’ investment in India shows that the company is now planning to expand their mobile operations outside their domestic market of Malaysia. Malaysia is a tough market to compete in considering the rising competition and price war between the various players. Indian mobility market is growing and with less than 10% population having access to a mobile phone, there is huge potential in India.

Maxis had earlier purchased 51 percent of Indonesia’s PT Natrindo Telepon Seluler for $100 million and this Indian deal is their second outside venture.

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