Click to play videoNew Delhi: India's biggest cross-border deal has been disconnected for the second time after Bharti and South African telecom major MTN called off their talks to form world's third largest telecom company.
The talks were called off after the deal got stuck over the issue of dual-listing or listing in both countries, which would have retained the national identity of MTN as a South African company. But Indian laws do not allow dual listing.
The by listing the company both in India and South Africa.
"Bharti and MTN have decided to disengage from their discussions. This structure needed an approval from the government of South Africa which has expressed its inability to accept it in the current form," Bharti says in a statement on Wednesday after the talks were called off.
Had the $23 billion deal gone through, it would have been India's biggest merger and acquisition transaction and would have surpassed Tata's Steel's acquisition of Corus for over $12 billion.
India Inc, however, is still hopeful that the courtship between Bharti and MTN would continue.
"Let's not be depressed, the South African economy is still very open. We need to go in there. I know that there are companies sitting in South Africa, selling their products, and as far as investing in a big way is concerned, we should not shy away. This was a special case where both socio-psychological and regulatory (issues) could not be sorted out. We cannot give up South Africa as a great partner in future," says Federation of Indian Chambers of Commerce and Industry Secretary General Amit Mitra.
As India Inc becomes more ambitious and spreads its wings globally, the government is considering a change in its existing regulations for a smoother flight ahead.
(With inputs from Mike Sangma)
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