New Delhi: The Telecom operators Reliance Communications and Aircel ended their mobile business merger deal on Sunday. The Reliance Communications said in a release, “The merger of RCom and Aircel’s mobile business has failed with mutual consent.”
Both telecom companies had signed the binding agreement in September 2016 for the merger of RCom’s mobile businesses with Aircel. Anil Ambani-led firm has put a great deal of delay in obtaining relevant approval for legal and regulatory uncertainties and transactions proposed by various interventions of vested interests.
“The unpredictable competitive intensity in the Indian telecom sector has also seriously impacted the dynamics of the industry, along with the latest policy guidelines that adversely impact bank financing for this region. As a result of various factors, the merger agreement has ended. The board has approved it, “it was added.
The RCom was expecting a significant debt reduction after merger with Aircel. The board of directors of the company reviewed the conversion program in a meeting held on Sunday and considered a flexible plan to reduce the debt.
The company said that by optimizing the spectrum portfolio, it will evaluate the flexible plan for its mobile business and focus on 4G technology under its current strategic change. RCOM has been given time to serve its debt obligations by its lenders by December 2017.
