Bharati MTN did it once again – after few months of discussion, Bharti Airtel has called off the $23Bn proposed merger deal citing inability on the government to accept the deal in it’s current form.
Earlier, the deal was called off in May 2008 as well, as SA government changed the deal structure at the last moment. Even this time around, the government rejected the deal stating that dual listing, as sought by South Africa, may not be possible at this stage as it needs a policy change on rupee convertibility.
This is also a blow to corporate India’s ambition to spread it’s wings globally (read this Forbes interview with Sunil Mittal on his ambitions plans).
“At this stage nobody is in a position to talk about the policy change on convertibility. However, the government will always be supportive of the initiative by an Indian company for an overseas transaction and acquisition,” – Commerce & Industry Minister, Anand Sharma (source)
Aside, in business world, it ain’t over till it’s over.