Reliance Communications calls off merger deal with Aircel

NEW DELHI: Anil Ambani-owned Reliance Communications (RCom) has called off plans to merge its wireless business with rival Aircel,

“Legal and regulatory uncertainties, and various interventions by vested interests, have caused inordinate delays in receipt of relevant approvals for the proposed transaction.Unprecedented competitive intensity in the Indian telecom sector, together with fresh policy directives adversely impacting bank financing for this sector, have also seriously affected industry dynamics. As a result of the various factors aforesaid, the merger agreement has lapsed. The Board of Directors of RCom at a meeting held in Mumbai approved the same,” RCom informed BSE  (Bombay Stock Exchange).

On September 14, 2016, the company had announced that it will merge its wireless telecom business with smaller rival Aircel to create the country’s 4th-biggest mobile phone operator, with asset base of more than Rs 65,000 crore and net worth of Rs 35,000 crore.