Vodafone is to pay $US5 billion to the Essar Group to buy it out of a joint venture in India.
The decision to exercise its option to purchase Essar's 33% stake was widely expected.
The BBC reports Vodafone will then have 75% of the business.
However, Indian foreign ownership rules will force the company to reduce its holding to 74%.
According to a statement on Vodafone's website, the buyout will be completed by November.
