In a surprise development, Reliance Communication Ltd (RCom) said on Friday evening that the company and the South African telecom major MTN Group have mutually decided to call off their talks for a business deal.
In a release issued by the company said “owing to certain legal and regulatory issues, the parties are presently unable to conclude a transaction. Accordingly, it has been mutually decided to allow the Exclusivity Agreement to lapse”.
Both RCom and MTN had entered into a 45-day exclusive negotiations for the proposed merger of their business. The deadline for the talks, which was on July 9, was extended to July 21.
However, before the end of the deadline, the parties have mutually decided to call off the talks.
According to sources, there could be reasons except “legal and regulatory issues, which have forced RCom, headed by Mr Anil Ambani, to end the talks. RIL headed by his estranged brother, Mr Mukesh Ambani, has been opposing the deal and initiated arbitration proceedings against RCom.
Yesterday, RIL said it had commenced arbitartion proceedings and has nominated Mr Justice B.P. Jeevan Reddy, a former Supreme Court judge.
