Vodafone and Essar group have finally buried their differences and have decided to partner with each other in Hutchison Essar Ltd, says a report. Both the companies have agreed to jointly manage Hucth Essar, in which Vodafone bought a 67 per cent stake from Hong Kong-based Hutchison Telecom International (HTIL) last month for $11.1 billion. The deal between Vodafone and Essar will be officially announced on Thursday.
According to the deal, Hutchison Essar would be renamed as Vodafone Essar Ltd. and will sell its products and services using the Vodafone brand. The UK telco will take operational control of the company, while Essar, which has 33 per cent stake, will have substantial representation on its board. According to media reports, Vodafone has granted the chairmanship to Essar group vice chairman Ravi Ruia. The current CEO of Hutchison Essar, Asim Ghosh, will remain in his position, but will report to Vodafone execs in the UK.
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