India's Reliance Communications has been in exclusive talks to merge with South Africa's MTN Group, but The Wall Street Journal is reporting that "people familiar with the matter" are saying that a deal is unlikely to happen by the companies' self-imposed deadline tomorrow. Still, the negotiating period may be extended, so the potential deal may not be in too much danger.
Reliance has rapidly become a global wireline and wireless powerhouse, having acquired companies such as U.S.-based Yipes Enterprise Services in recent years, and the MTN deal could be its most significant yet. It could create a company with more than 100 million mobile customers in India, the Middle East and Africa. However, internal squabbling at Reliance reportedly has been one of the factors hindering the deal, as well as deal structure (the companies have talked both about MTN acquiring Reliance and about Reliance acquiring MTN).
If the deal fails to materialize, could new suitors emerge for both companies?
- read this story at The Wall Street Journal