Reliance Communications (RCOM) has called off its merger with Aircel citing inordinate delays caused by legal and regulatory uncertainties, various interventions by vested interests, policy directives impacting bank financing for telecom, and changed industry dynamics. The decision has also been approved by the company’s board. RCOM’s main lenders, including China Development Bank, Standard Chartered Bank and HSBC, had objected to the petition seeking approval for the merger being admitted in the National Company Law Tribunal (NCLT). They eventually gave their consent but other creditors including Indus Towers, Ericsson, Bharti Infratel and GTL Infrastructure’s Chennai Network Infrastructure objected to the same, saying that their dues needed to be cleared before proceeding with the merger. The Department of Telecommunications (DoT) had also submitted before the NCLT that RCOM’s merger with Aircel would need a no-objection clearance from the Supreme Court.
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