Abstract

India has been one of the fastest growing mobile markets in the world in recent times. With the rapid economic growth in the past few years, many companies in India have actively pursued inorganic growth options . Large mergers and acquisitions have happened in India in industries like steel, aviation, and telecom. This case deals with the acquisition of Hutchison Essar by Vodafone for US$10.9 billion from Hutchison Telecommunications International Limited (HTIL), which has been the largest acquisition in India till date. Acquisition of Hutchison is also considered to be the second largest M&A transaction ever in Asia. The deal was considered noteworthy not only because of its sheer size, but also because of the interest it created among potential acquirers across the world and the regulatory road blocks that it had to encounter in deal closure. The case tries to capture the complexity that characterizes such large deals. Starting with a brief overview of the telecom sector, the case study highlights the chronological list of events leading to the acquisition, the strategic motivations behind the deal and view points from select analysts of leading investment banks. The case ends with a note on the investor sentiments back home of both Vodafone and HTIL.

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