After facing cut-throat competition from Mukesh Ambani's Reliance Jio, Vodafone and Idea have decided to merge. London-headquartered Vodafone and Kumar Birla-controlled Idea Cellular on Monday announced India Inc's biggest-ever merger to create the country's undisputed leader in the world's second largest telecom market after China.

The combined 394-million subscriber base of India's second and third largest telcos will eclipse Bharti Airtel's 270 million - and catapult the merged company to No 2 spot globally.

The mega-merger will create a company that will be No. 1 or a strong No. 2 in all telecom circles except Jammu & Kashmir. Voda's 204 million subscribers and Idea's 190 million (at the end of 2016) will give them a combined market share of 35%. Aggregate revenues of over Rs 80,000 crore represent 42% of the national pie. Vodafone will hold 45% and Idea Cellular 26% stake in the post-merger company, which is being valued at $23 billion, they will have equal voting rights.