Vodafone Idea calls off merger with ABIPBL

Vodafone Idea Ltd has decided to close m-Pesa vertical following the closure of Aditya Birla Idea Payments Bank Ltd (ABIPBL), in which it was being merged with, a top official said on Monday.

Nearly 17 months after it began operations, ABIPBL on July 20 announced winding up of its business on account of “unanticipated developments” that made its economic model “unviable”.

“The merger of Vodafone m-pesa with ABIPBL has thus been called off and business prepaid instruments and business correspondence are in the process of closure,” Vodafone Idea Chief Executive Officer Balesh Sharma said company’s earning call.

He attributed regulatory changes for the payments bank business and deterioration in the health of the telecom sector to the decision.