File photo of Reliance Group Chairman Anil Ambani (Photo: PTI)
Anil Ambani-owned Reliance Communications today called off merger with Aircel.
The mobile carrier said in its statement to BSE, "Legal and regulatory uncertainties, and various interventions by vested interests, have caused inordinate delays in receipt of relevant approvals for the proposed transaction."
RCom said that it will evaluate an alternate plan for its mobile business through adoption of a 4G LTE focused mobile strategy.
The combination of the mobile business of Sistema Shyam Teleservices (MTS India) into RCom is expected to be completed this month.
"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" RCom further said in its statement.
The company is considering alternate plans to cut debt. It expects monetisation of tower and fibre assets and real estate, and optimisation of spectrum portfolio to generate proceeds of over Rs 25,000 crore for debt reduction.