RCom, Aircel merger deal still in dire straits

The proposed merger of Reliance Communications' wireless business and Aircel is still uncertain as Department of Telecommunications (DoT) puts up Supreme Court's (SC) go-ahead a condition to approve the deal.

According to the reports, earlier this year, the SC threatened to cancel Aircel's licences if the top executives of its Maxis Berhad(Maxis owns 74% of Aircel), continued to dodge the hearings over a case where they were accused of bribing politicians and officials. Cancellation of the licences could block the deal. Therefore, the DoT puts up this as a condition as it doesn't want to risk of clearing the merger and then the court making an adverse order.

Both companies have already received approvals from the Competition Commission of India (CCI), stock exchanges and shareholders. But the condition of DoT has remained as an obstacle for the companies.
 

Also, as per the reports, approval of National Company Law Tribunal (NCLT) could be reliant upon the apex court's next move if it were to happen before NCLT's verdict, especially with DoT suggesting that the tribunal ask the companies to get the SC's clearance. It said, DoT's position can't change even if NCLT clears the deal. The department has informed RCom and Aircel of the conditions they need to meet to get its clearance.

Tags: RCom, Aircel, rcom aircel merger, reliance communications, department of telecommunications, dot