Vodafone sure about getting approval for their Hutch acquisition

Vodafone sure about getting approval for their Hutch acquisition

British mobile phone company Vodafone is currently in the process of acquiring the Indian mobile service provider Hutch.

The company has now said that they are sure that their 11.1-billion-dollar acquisition of mobile operator Hutchison Essar meets Indian foreign investment rules.

Vodafone said that they are directly buying only 52 percent of Hutchison Essar while options would give it another 15 percent. This would leave them with an ownership that is below the 74 percent ceiling.

Vodafone spokesman V.K. Cherian added: “We have been maintaining that we have effective 52 percent control. We have received consistent advice that the structural arrangements for our holding in Hutch is legal and compliant with India’s law, including the 74 percent foreign ownership cap. We are absolutely confident that the deal will receive approval.”