Reliance Industries Likely To Buy Stake In T-Mobile Netherlands BV

Reliance Industries is likely to purchase a stake in T-Mobile Netherlands BV. The company is expected to invest $5.7 billion to acquire the stake in a month. The company has already started shortlisting the list of lenders so that they can fund the deal. In fact, several foreign banks are also expected to finance the deal.

RIL Deal With T-Mobile

"RIL has been evaluating the deal for over three months now, and the discussions have progressed substantially since then," a source close to the development was quoted by LiveMint. He added that "Akash Ambani, who leads Reliance Jio, is personally managing the transaction."

This development comes soon after the telecom services of RIL completed five years in India and managed to get 441 million users on board. However, the company plans to take this number to 500 million soon. "The T-Mobile acquisition will give Jio a foothold in the European telecom market and help it de-risk the business by diversifying into other markets,'' the source added.

For the unaware, T-Mobile Netherlands comes under Deutsche Telekom AG, which entered in Netherlands 2000. Reliance Industries Limited is trying its best to build a technology firm like Google and Amazon. Reliance Jio, which is a subsidiary of Reliance Industries, has sold its stake to Google, Qualcomm, Facebook, TPG, General Atlantic, and more.

It is worth noting that Reliance Industries is focussing a lot on its digital services, which is why it has sold a stake to several tech companies and raised Rs. 1.52 lakh crores.

Reliance Jio And Google Partnership: Check Details

Both companies are developing smartphones under the same partnership. The smartphone is all set to launch on September 10, 2021. This most affordable device is expected to be available in two variants Basic and Advanced.

The JioPhone Next is likely to be priced under Rs. 7000; however, several reports claim that buyers have to pay Rs. 500 and Rs. 700 initially. Furthermore, Reliance Jio is leading the industry and managed to post a profit in the Q1 of this financial year. The company has posted a 45 percent profit to Rs. 3,651 crores.