Vodafone’s Hutch deal cleared by Foreign Investment Promotion Board

Vodafone’s Hutch deal cleared by Foreign Investment Promotion Board

India’s Foreign Investment Promotion Board has revealed that they have now cleared the Vodafone’s 11.1-billion-dollar bid for the Indian mobile service provider Hutch.

The decision has been delayed several times by the Indian government as it was not clear whether the deal was in compliance with the foreign investment limits.

Ajay Dua, secretary of the Department of Industrial Policy and Promotion confirmed their approval in a statement: “We are fully satisfied with the compliance level.”

Indian government allows foreign ownership of up to 74 percent in domestic telecom companies and Vodafone has met that condition.

The British mobile industry giant said that it is directly buying 52 percent of Hutchison Essar while options on stakes held by local partners would give it another 15 percent.