Vodafone gains in stock market with Hutch buyout

Vodafone gains in stock market with Hutch buyout

Vodafone Group PLC gained at the stock exchange after they confirmed that they are acquiring Hutchison’s stake in Indian mobile service provider Hutch.

The company has agreed to pay $11.1 billion for the 67 percent stake held by Hutchison. India is one of the fastest growing mobile markets and gives Vodafone enough space to grow in the coming years.

The European market is more or less saturated and Vodafone has been working hard on entering emerging mobile markets.

Vodafone has also now said that it would make an offer to buy Essar Group’s 33 percent stake in Hutchison Essar “at the equivalent price per share” it agreed to with Hutchison Telecom.

Hutch is currently the fourth-largest mobile service provider in India with 23.3 million customers and 16.4 percent of the market.

Michael Dunning of Fitch Ratings spoke about Vodafone: “Vodafone’s portfolio of emerging markets assets is a strong one and will offset slowing growth in its western European markets.”