Idea-Vodafone India merger announced, creating India’s largest telecom company

British mobile phone giant Vodafone on Monday announced to merge its Indian unit with Idea Cellular, turning to India's multi-billion dollar telecommunications market on its head.

“Vodafone confirms that it is in discussions with the Aditya Birla Group about an all share merger of Vodafone India (excluding Vodafone's 42 per cent stake in Indus Towers) and Idea,” Vodafone had said in a statement.

“Any merger would be effected through the issue of new shares in Idea to Vodafone and would result in Vodafone de-consolidating Vodafone India.

“There is no certainty that any transaction will be agreed, nor as to the terms or timing of any transaction,” the statement added.

The group of analysts has estimated that the pair would command a combined revenue market share of 43 per cent, ahead of rival Bharti Airtel, which would hold 33 per cent.

Reliance Jio, which began operations with great fanfare last year and is owned by India's richest man Mukesh Ambani would have 13 per cent, according to CLSA's research.