Question

Which two companies have agreed to merge to form India's largest telecom company? 

• A. Vodafone and Aircel
• B. Vodafone and Idea
• C. Airtel and Idea
• D. Reliance and Idea
• E.

Hint:

Keep an eye on major corporate mergers and acquisitions, as they can significantly alter market dynamics and competition.

Answer 1

The Correct Option is B

Vodafone India and Idea Cellular merged in 2018 to form Vodafone Idea Limited, creating the largest telecom operator in India. The merger helped them to compete with the market leader, Reliance Jio. Why option (B) fits: The merger between Vodafone and Idea created the largest telecom company in India by subscriber base. Eliminations: (A) Vodafone and Aircel never merged, and (C) Airtel and Idea are two separate companies. (D) Reliance and Idea did not merge either. 

Answer 2

Recalling which two brand names actually combined into a single new entity, rather than merely being rivals in the same market, clears this up.

1. Vodafone and Aircel: Aircel pursued a separate, ultimately unsuccessful merger attempt with Reliance Communications, not Vodafone.
2. Vodafone and Idea: these two companies agreed to combine their India operations into Vodafone Idea Limited, creating the country's largest telecom operator by subscribers at the time.
3. Airtel and Idea: both are telecom players but never merged with each other.
4. Reliance and Idea: Reliance Jio was in fact the competitor whose entry pushed Vodafone and Idea to combine forces, not a merger partner of Idea.

The pairing that actually merged into one company is Vodafone and Idea.

Hence, the correct answer is Vodafone and Idea.