Reliance Communications in talks with Aircel to merge wireless biz

MUMBAI: Anil Ambani’s Reliance Communications (RCOM) has entered into a 90-day exclusivity period with Maxis Communications Berhad (MCB) and Sindya Securities and Investments, the shareholders of Aircel Limited, to consider the potential combination of their Indian wireless business.

The merger of RCOM and Aircel’s wireless business will mutually derive the expected substantial benefits of in country consolidation, including opex and capex synergies and revenue enhancement.

The potential combination will exclude RCOM’s towers and optical fibre infrastructure, for which RCOM is proceeding with an asset sale, as announced on 4 December, 2015.

RCOM said that the discussions are non-binding in nature and any transaction will be subject to due diligence, definitive documentation and regulatory, shareholders’ and other third party approvals. Hence, there is no certainty that any transaction will result.

It may be recalled that RCOM recently entered into a merger deal with MTS.