- A family feud between brother Anil and Mukesh had led to the split in Reliance Industries Ltd.
- Announcing a merger, Anil said both the brothers are working together to realise the dream of their late father Dhirubhai Ambani.
Ending over a decade-long family feud that split the Reliance Industries Ltd, Anil Ambani on Tuesday announced a "virtual merger" of his Reliance Communications with older brother Mukesh Ambani's Reliance Jio has now been effected.
"Anil Ambani & Mukesh Ambani are working hand in hand to create the India Shri Dhirubhai Ambani dreamt of," Anil Ambani-promoted Reliance Group tweeted, quoting its chairman.
On RCom's association with Mukesh Ambani-led Reliance Jio, Anil said both the brothers are working together to realise the dream of their late father Dhirubhai Ambani, and this partnership has accomplished a virtual merger between RCom and Rel Jio.
Anil Ambani & Mukesh Ambani are working hand in hand to create the India that Shri Dhirubhai Ambani dreamt of. #RelianceAGMs2016— Reliance Group (@reliancegroup) September 27, 2016
He also said the company already has all the spectrum they need for 2G 3G and 4G, plus spectrum trading and sharing with Reliance Jio. This will be beefed up further once the merger is complete.
"Spectrum sharing with Rel Jio has resulted in RCom's expenditure on this coming down (substantially) while the competition will have to spend heavily on spectrum to survive," he said, reported PTI.
The deal with Jio would help Reliance Communications cut costs, while other telecom companies would have to spend heavily on spectrum to survive, Mr Ambani said, also vowing to aim at reducing his company's mammoth debt by more than 75% in a year's time.
Earlier this month, RCom had signed a definitive agreement with Aircel for the merger of wireless businesses with itself.
RCom and Aircel will each hold have an equal stake in the merged entity.
The merger will lead to a reduction in RCom's overall debt by ₹20,000 crore from its total debt of ₹42,651 crore, and Aircel's debt will come down by ₹4,000 crore from ₹23,436 crore.
Last Updated 31, Mar 2018, 6:33 PM