Essar confirms: Vodafone wins controlling stake in Hutchison Essar

Essar confirms: Vodafone wins controlling stake in Hutchison Essar

India’s Essar Group has now confirmed in a statement that UK based Vodafone Group Plc has won the bid for the controlling stake in Hutchison Essar.

The company had reportedly placed a bid that valued Hutch at around $19 billion, including debt.

Interestingly, Essar Group itself was interested in bidding for the stake of Hutchison in the company. They already hold a 33% stake in Hutch.

Market rumors had already said that Vodafone had won though the official statement was released just some hours back.

This deal would be an important one for Vodafone Chief Executive Arun Sarin who is under pressure from investors in the company to show improved performance.

Hutch has a market share of 16 percent in India and is the fourth largest provider of mobile services. They could boost a lot from Vodafone’s experience and expertise in this market.

Now the question is, whether my Hutch connection would soon start showing Vodafone label instead!