According to the Financial Times, UAE-based Emirates Telecomunications Company (Etisalat) is close to acquiring a 26% stake in India’s second largest mobile network operator by subscribers, Reliance Communications (RCOM). Citing people familiar with the negotiations between the two companies, the report claims that in a bid to overcome any potential regulatory obstacles to a deal a merger of RCOM with Etisalat’s Indian unit, Swan Telecom, could be considered.
Under existing Indian telecoms norms no company may own more than 10% in two separate telecoms entities in the country. It is believed that a tie-up between RCOM and Etisalat could come as early as next month, although other sources have suggested that it may take until the end of the year for such a deal to come to fruition.
