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| Vodafone buys Indian mobile firm | Vodafone buys Indian mobile firm |
| (10 minutes later) | |
| Vodafone has bought a controlling stake in Indian mobile phone firm Hutchison Essar for $11.1bn (£5.7bn). | Vodafone has bought a controlling stake in Indian mobile phone firm Hutchison Essar for $11.1bn (£5.7bn). |
| The deal for 67% of the company gives Vodafone access to India's rapidly growing mobile phone market, where Essar has a share of about 16%. | The deal for 67% of the company gives Vodafone access to India's rapidly growing mobile phone market, where Essar has a share of about 16%. |
| It ends a long bidding war for the Essar stake owned by Hong Kong's Hutchison Telecommunications. | It ends a long bidding war for the Essar stake owned by Hong Kong's Hutchison Telecommunications. |
| UK firm Vodafone is moving into emerging economies to make up for slow growth in mature markets like Europe. | UK firm Vodafone is moving into emerging economies to make up for slow growth in mature markets like Europe. |
| According to Vodafone, India is the fastest growing mobile market in the world, with around 6.5 million new subscribers every month. | |
| 'The world's most important mobile market' | 'The world's most important mobile market' |
| Arun Sarin, the chief executive of Vodafone, said the announcement was "clear evidence of how we are executing our strategy of developing our presence in emerging markets". | Arun Sarin, the chief executive of Vodafone, said the announcement was "clear evidence of how we are executing our strategy of developing our presence in emerging markets". |
| Vodafone's chairman, Sir John Bond, said India was "destined to become one of the largest and most important mobile markets in the world," and predicted the company would be "playing [its] part in delivering the significant economic and social benefits which mobile telephony can bring to the people of India". | Vodafone's chairman, Sir John Bond, said India was "destined to become one of the largest and most important mobile markets in the world," and predicted the company would be "playing [its] part in delivering the significant economic and social benefits which mobile telephony can bring to the people of India". |
| The deal values the Indian mobile phone firm - often referred to as Hutch - at $18.8bn, about a billion dollar less than some analysts had predicted. | The deal values the Indian mobile phone firm - often referred to as Hutch - at $18.8bn, about a billion dollar less than some analysts had predicted. |
| Vodafone said it would also take on $2bn in net debt. The UK mobile phone operator was bidding against Anil Ambani's Reliance Communications and the Hinduja Group for the purchase of Hutch. | Vodafone said it would also take on $2bn in net debt. The UK mobile phone operator was bidding against Anil Ambani's Reliance Communications and the Hinduja Group for the purchase of Hutch. |
| Essar Group, which owns the remaining 33% of the company, had reportedly tried to take full control of Hutchison Essar as well. | Essar Group, which owns the remaining 33% of the company, had reportedly tried to take full control of Hutchison Essar as well. |
| Vodafone said it would offer Essar Group to buy this stake "at the equivalent price per share it has agreed with [Hutchison Telecommunications International]". | Vodafone said it would offer Essar Group to buy this stake "at the equivalent price per share it has agreed with [Hutchison Telecommunications International]". |
| Joint network with Bharti | Joint network with Bharti |
| The UK operator already had a small stake in the Indian mobile phone market, owning 5.6% of Bharti Airtel. | The UK operator already had a small stake in the Indian mobile phone market, owning 5.6% of Bharti Airtel. |
| Vodafone has now granted an option to Bharti Group to buy this stake. | Vodafone has now granted an option to Bharti Group to buy this stake. |
| In return Vodafone's new Indian subsidiary and Bharti have signed a memorandum of understanding to share their mobile network infrastructure, while continuing to compete for customers. | In return Vodafone's new Indian subsidiary and Bharti have signed a memorandum of understanding to share their mobile network infrastructure, while continuing to compete for customers. |
| Last week Vodafone signed a similar agreement in the UK, where it agreed with rival Orange to merge their 3G networks. | Last week Vodafone signed a similar agreement in the UK, where it agreed with rival Orange to merge their 3G networks. |
| Vodafone currently has interests in emerging markets including Egypt, Romania and India - and underlined its ambitions for further expansion in similar markets at an investor meeting in January. | Vodafone currently has interests in emerging markets including Egypt, Romania and India - and underlined its ambitions for further expansion in similar markets at an investor meeting in January. |