RCOM and Aircel extend merger talks

Reliance Communications (RCOM) and Aircel have extended the exclusivity period for their negotiations regarding the merging of their respective wireless businesses, citing ‘substantial progress’ the Economic Time reports. The two cellcos have been involved in talks since December 2015, and in February 2016 the pair reportedly agreed to a 50:50 ownership structure of the enlarged company. The following month, however, the talks were extended by 60 days, and the duo have now pushed the deadline for talks back to 22 June. As previously reported by CommsUpdate, RCOM is set to merge its operations with Russian-owned Sistema Shyam Teleservices (SSTL), having received regulatory clearance for the tie-up earlier this year. A combined RCOM/SSTL/Aircel would have a subscriber base of more than 195 million users, giving it a market share of just over 19%, and placing it in contention with Vodafone India for second place, behind Bharti Airtel.