Bharti Airtel has announced that it has entered into an agreement with Telenor South Asia Investments to acquire Telenor India. The acquisition is subject to requisite regulatory approvals.
According to Telenor's website, it has circles in India across Andhra Pradesh and Telangana, Bihar and Jharkhand, Maharashtra, Gujarat, UP (East) and UP (West).
The proposed acquisition will include transfer of all of Telenor India’s assets and customers, into Airtel’s overall customer base and network.
Gopal Vittal, managing director and CEO (India and South Asia), Bharti Airtel, said, “The agreement underlines our commitment to lead India’s digital revolution by offering world-class and affordable telecom services through a robust spectrum portfolio spread across multiple bands. On completion, the proposed acquisition will undergo seamless integration, both on the customer as well as the network side, and further strengthen our market position in several key circles. The customers of Telenor India will now be able to enjoy India’s widest and fastest voice & data network, and a range of Airtel’s world-class products and services.”
He added, “The acquisition of additional spectrum through this transaction, which made an attractive business proposition, has further enhanced our already solid spectrum portfolio. The proposed transaction will also create substantial long term value for our shareholders given the significant synergies.”
Sigve Brekke, CEO, Telenor Group, said, “We believe today’s agreement is in the best interest of our customers, employees and Telenor Group. Finding a long term solution to our India business has been a priority for us, and we are pleased with our agreement with Airtel. The decision to exit India has not been taken lightly. After thorough consideration, it is our view that the significant investments needed to secure Telenor India’s future business on a standalone basis will not give an acceptable level of return.”