Telecom network operator Reliance Communications has extended discussions with small rival Aircel for merging their wireless businesses by another 30 days.
This is the second extension by the two telecom operators in India. Reliance Communications earlier acquired MTS India from Sistema Group of Russia.
Reliance Communications says there is substantial progress in talks between the promoters of Aircel and Reliance Communications. Anil Ambani, brother of Mukesh Ambani, is the promoter of Reliance Communications.
“Reliance Communications, Maxis Communications and Sindya Securities and Investments extended the merger talks by 30 days to June 22, to consider the potential combination of the Indian wireless business of RCOM and Aircel,” said Reliance Communications in a statement issued in Mumbai on Saturday.
Reliance Communications and Aircel aim to benefit from Opex and Capex synergies and revenue enhancement by consolidating their telecom businesses.
“Any transaction is subject to completion of due diligence, definitive documentation and regulatory, shareholders’ and other third party approvals. Hence, there is no certainty that any transaction will result in success,” a statement from Reliance Communications said.
