A PYMNTS Company

India: Antitrust nod for Reliance Communications, Sistema merger

 |  February 22, 2016

India’s antitrust watchdog has approved the merger of Sistema Shyam’s telecom venture with Reliance Communications in a deal valued at $730 million, involving both a stock-swap and payment towards spectrum.

“Further to our letter dated January 14, 2016 we wish to inform you that Competition Commission of India has approved the transfer of telecommunications undertaking of Sistema Shyam Teleservices Ltd to the company,” Reliance Communications said in a regulatory filing.

One of the most significant aspects of the deal is that Reliance Communications will have licence for spectrum across 22 circles for a minimum of 15 years for the 4G services, stretching up to 20 years in some circles, a source involved with the deal said.

“Actually, if we consider the fact that RCom won’t have to pay for new spectrum for eight circles where the licence is expiring in the near future, the deal size works out to Rs.15,000 crore — the company won’t have to buy spectrum till 2021 now,” the source said.

Full Content: Domain-B

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.