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Merger with Idea: Vodafone goes defensive with its India play

The Indian operation will cease to be a subsidiary for the British parent

A man casts a silhouette onto an electronic screen displaying a Vodafone logo, in Mumbai. Photo: Reuters
A man casts a silhouette onto an electronic screen displaying a Vodafone logo, in Mumbai. Photo: Reuters

British telecom giant Vodafone plc would be hoping to bring an end to the problems it has faced since it bought Hutchison's stake in the company a decade ago. Since Vodafone made its $11.1 billion acquisition of Hutchison’s operations in 2007 and paid another $5.5 billion to buy out Ruia’s stake later, the British company has seldom made money on its India operations and had to take two large impairments. Last year it invested another $7.2 billion. Vodafone has invested over $24 billion in India. Apart from buying stake, Vodafone plc invested billions of dollars to buy ...