Deals
Reliance Communications Aborts Aircel Deal in Debt-Cut Blow
- Company cites regulatory delay, intense competition as reasons
- To consider other plans to cut debt such as sharing airwaves
Pedestrians walk past a Reliance Communications Ltd. Mobile Store in Mumbai on Feb. 28.
Photographer: Dhiraj Singh/BloombergThis article is for subscribers only.
Reliance Communications Ltd.’s plan to merge with Aircel Ltd. collapsed in a blow to the Indian mobile phone carriers’ plans to pare debt and gain scale to take on bigger rivals.
“Legal uncertainties” and “interventions by vested interests” caused delays in regulatory approvals, Reliance Communications said in an exchange filing on Sunday. Consequently, the merger has “lapsed with mutual consent,” it said.