The Indian conglomerate agreed to acquire its smaller rival in February 2014, but the country’s government has been concerned over the effect this would have on its own revenue, and Bharti has now abandoned the deal.
“Loop Mobile and Bharti applied to DoT [Department of Telecom] for approval of the business transfer in March 2014,” a Loop Mobile spokesperson told local reporters.
“The approval for the transaction is still awaited from the relevant authorities as a result of which Bharti Airtel has withdrawn from the proposed transaction causing huge loss to the company.”
Loop's licence is due to expire on November 29 and initially, the deal with Bharti Airtel was a lifeline for the operator.
This aborted deal – which would have created the largest mobile network in Mumbai, India – could now have serious implications for Loop.
