RCom in exclusive talks with MTN
The two firms have agreed for a 45-day exclusivity to work out the details for merging their businesses.india Updated: May 26, 2008 14:05 IST
Anil Ambani group company Reliance Communications on Monday announced entering into an exclusive negotiations with South Africa's telecom giant MTN to discuss potential combination of their businesses.
The two companies have agreed for a 45-day exclusivity to work out the details for merging their businesses.
The development comes just two days after South African company deviated from agreed terms with India's largest telecom player Bharti Airtel, who pulled out of 3-week long negotiations.
Commenting on the development, Anil Ambani said "negotiations are on to achieve global platform for exponential growth."
The company has also informed the stock exchange about the development and said that further announcement would be made when appropriate.
If the negotiations are successful, the combination of MTN and Reliance Communications would create a global wireless juggernaut, larger even than developed-market giants such as AT&T.
Last week, Bharti Airtel had decided to pull out as MTN had proposed a structure which would have made the Indian telecom giant a subsidiary of South African company, contrary to the agreed terms between the two firms prior to entering the discussions.