By Santosh Menon and Himangshu Watts

BARCELONA/MUMBAI (Reuters) - Britain's Vodafone Group Plc (VOD.L: Quote, Profile,

 
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Vodafone wins Hutch Essar, valuing it at $19 bln

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By Santosh Menon and Himangshu Watts

BARCELONA/MUMBAI (Reuters) - Britain's Vodafone Group Plc (VOD.L: Quote, Profile, Research) has won the battle for a controlling stake in Hutchison Essar with a bid that values India's fourth-biggest mobile firm at around $19 billion, including debt.

India's Essar Group, which owns 33 percent of Hutch Essar and had also been bidding for the 67 percent being sold by Hutchison Telecommunications International Ltd. (2332.HK: Quote, Profile, Research), confirmed the deal on Sunday.

A source close to the matter earlier told Reuters that Vodafone had won the bid battle for the 67 percent stake, defeating India's Reliance Communications (RLCM.BO: Quote, Profile, Research) and Hinduja group, as well as Essar.

Vodafone declined to comment and Hutchison was not immediately available for comment.

The deal is a critical move by Vodafone Chief Executive Arun Sarin, who is under pressure amid slowing growth in Vodafone's core European markets to expand the business while at the same time not overpay for acquisitions.

India is the world's fastest-growing major mobile phone market and Hutchison Essar has a market share of 16 percent.

Vodafone currently has a 10 percent stake in India's number one player Bharti Airtel Ltd. (BRTI.BO: Quote, Profile, Research) but Bharti Chairman Sunil Bharti Mittal had said it was not keen to sell a further stake to the British group.  Continued...

 

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