Reliance Communications and MTN extend merger talks

New Delhi - India's Reliance Communications and South Africa's largest mobile phone network operator MTN on Wednesday said they were extending exclusive talks until July 21 to discuss a potential combination of their businesses.



By (DPA)

Published: Wed 9 Jul 2008, 1:35 PM

Last updated: Sun 5 Apr 2015, 12:48 PM

MTN and Reliance Communications, India's second largest telecom company, started talks on May 26, that could create a 70-billion-dollar global wireless group with more than 115 million subscribers operating in about two dozen countries.

The 45-day deadline to work out details of a merger ended on July 8.

‘RCOM and MTN have agreed to continue their negotiations in relation to such potential business combination, and have extended the period of exclusivity until 21st July 2008,’ said a statement issued by Reliance Communications from its headquarters in Mumbai.

‘A further announcement will be made when appropriate. It is to be noted that there is no certainty either on completion, or the timing of the said proposal,’ it added.

The talks have been marred by the feud between Anil Ambani, the chairman of Reliance Communications and his brother Mukesh Ambani.

According to reports in the local media, Anil could sell a stake in Reliance Communications to MTN but this is opposed by Mukesh who has threatened legal action, saying he has the first right to buy a stake in his younger brother's firm.

MTN operates in 21 countries in Africa, the Middle East and Central Asia, including South Africa, Nigeria, Uganda, Syria, Iran, Afghanistan and Yemen, and had 62 million subscribers at the end of March 2008.

Reliance Communications is the flagship company of Anil Ambani Group and is rated among Asia's top five most valuable telecom companies. It has about 48 million customers and is valued at nearly 30 billion dollars.


More news from Business
In-store shopping regains trust

Business

In-store shopping regains trust

What is happening now is that as Covid-19 cases continue to decline, residents are regaining confidence in in-store shopping. This is according to a Kearney study in which UAE respondents cite convenience (51 per cent), enhanced shopping experience (49 per cent) and competitive pricing (44 per cent) as the main motivators driving them back to brick and mortar stores

Business2 days ago