Indian operator Reliance Communications (RCom) has announced that its merger agreement with Aircel merger agreement has lapsed. RCom and Aircel signed binding agreements in September 2016 for the merger of RCom's wireless businesses with Aircel. According to RCom, “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 [with Aircel] has lapsed”, RCom said.
Separately, the company’s board of directors has decided that RCom will evaluate an alternate plan for its mobile business, through optimization of its spectrum portfolio and adoption of a 4G focused mobile strategy.
