Amazon to buy stake of $ 2 billion in Airtel

On 5 June 2020 at 02:29

Amazon, a major technology company in the United States, has embarked on a journey to the broader Indian market, through the acquisition of shares of Bharti Airtel, which also has a branch in Rwanda.

Talks to buy Bharti Airtel’s shares are not far off, but analysts say the move by both sides will boost India’s technology economy.

The agreement between the two companies is expected to give a 5% of Bharti Airtel stake to Amazon Inc. based on the state of the market these days.

Bharti Airtel is ranked third in India’s telecommunications services industry with a strong rivalry with Reliance Jio.

Some people told Reuters that the method Reliance Jio used to lead other telecommunications companies in India and Bharti Airtel could.

Initially, Amazon had wanted to buy between 8-10% of Bharti Airtel shares. Just because the talks are still at the beginning […] the agreement may change or terminated.

Amazon plans to immediately look at other money transfer options that will help Bharti Airtel customers get their products cheaply.

An Amazon spokesperson declined to comment on the matter, as the agency he represents does not disclose information about what they will or will not do in the future.

Only a statement from Bharti Airtel says it is already working with various technology companies that want to deliver their products and services to customers.

Shares of Bharti Airtel in the financial and stock markets rose 6% on Thursday, June 4, after the publication of a talk show between them and Amazon.

In the last six weeks, Jio company competing with Bharti raised $ 10 billion from investors including Facebook.

Google’s Alphabet Inc. is also looking for ways to invest in India’s second Vodafone Idea in providing telecommunications services.

Amazon is booming in the Indian tech market due to its rapid expansion as the country’s population is growing, reaching 1.3 billion.

Amazon plans to invest $ 6.5 billion in online business and will make it easier to use Bharti’s Internet at a lower cost as long as the two companies reached an agreement.

It was in December 2017 that Bharti Airtel, a subsidiary of Airtel Rwanda, bought all the shares of Tigo Rwanda, a subsidiary of Millicom International Cellular SA. The purchase agreement, signed in New Delhi, India, gave Airtel Rwanda a 100% stake in all Tigo Rwanda shares.

Bharti Airtel is the world’s largest telecommunications company with more than 403 million customers in 18 African and Asian countries.