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Bharti Airtel will keep 4,000 employees of Telenor, Tata Tele after merger

Tata Teleservices (TTSL) consumer mobility business employed around 5,000 in October while Telenor India had around 2,000 people on its payroll.

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After the merger with Telenor and Tata tele, Bharti Airtel will absorb around 4,000 staff of both the firms, according to the report in the Economic Times. 

Quoting people familiar with the development, the report further mentioned that post merger, Airtel will transfer 15 per cent of the employees overseas, mainly Africa. 

"It's inevitable in a post-merger scenario all employees will not find meaningful roles and, accordingly, will be provided complete support to deal with such an outcome," an Airtel spokesperson told ET in an email. 

"An exercise is under way to map the employee pool to the post-merger requirements," the spokesperson said. Airtel will try to absorb as many employees as it can within India telecom business and "a few will be offered opportunities across its international operations and other group, associate companies," he added. 

According to the report, Tata Teleservices (TTSL) consumer mobility business employed around 5,000 in October while Telenor India had around 2,000 people on its payroll. 

Tata Teleservices will merge with Bharti Airtel as the Tata group firm looks to tide over its financial woes by exiting the mobile telephony business.

The companies said the deal is on a no-debt, no-cash basis, implying Airtel is not taking over any of the about Rs 40,000 crore debt with Tata Teleservices and is neither paying any cash.

Even 70-80 per cent of the Rs 9,000-10,000 crore deferred payments for spectrum that TTSL holds, will be paid by Tatas.

The deal, subject to regulatory approvals, will see over 40 million customers of Tata Teleservices (TTSL) and Tata Teleservices Maharashtra (TTML) joining Bharti Airtel and mark further consolidation in one of the world's largest telecom markets.

"This is a significant development towards further consolidation in the Indian mobile industry... The acquisition of additional spectrum made an attractive business proposition," Bharti Airtel Chairman Sunil Bharti Mittal then said.

The transaction will create substantial long-term value for shareholders given the significant synergies, he said.

Tata Sons Chairman N Chandrasekaran said the agreement is the "best and most optimal solution" for the Tata Group and its stakeholders.

"We have evaluated multiple options and are pleased to have this agreement with Bharti," he added.

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