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Vodafone shells out $11bn for Indian mobile giant
Takes controlling stake in Hutchison Essar...

By Reuters

Published: Monday 12 February 2007

Vodafone Group has beaten rival suitors with an $11.1bn offer for a controlling stake in India's Hutchison Essar, gaining a strong foothold in the world's fastest growing mobile market.

The company confirmed its deal for a 67 per cent stake yesterday, which valued India's fourth-largest mobile operator at $18.8bn, including debt. It is Vodafone's third-biggest acquisition ever.

Vodafone, the world's biggest mobile operator outside China, said the Indian market, with just 150 million users in a population of 1.1 billion, offered strong growth potential and was in line with its strategy of seeking growth from emerging markets.

India is expected to grow to 500 million subscribers by 2010 from 150 million now, adding five million to six million customers each month.