The much-touted deal between Anil Ambani group company RCOM and South African telecom giant MTN was called off on Friday.
"The two sides were unable to conclude the transaction due to certain regulatory issues," RCOM spokesperson said in statement on Friday night.
The deal, which was clouded by the bitter dispute between the Ambani siblings, was called off a day after RIL nominated an arbitrator to resolve the dispute with RCOM.
RCOM and MTN decided to end the exclusivity agreement three days before its expiry.
MTN, in a statement to Johannesburg Stock Exchange, said, "With regard to exclusive negotiations relating to a potential business combination between MTN and RCOM, owing to certain regulatory issues, the parties are unable to conclude a transaction. Accordingly, it has been mutually decided to allow the exclusivity agreement to lapse."
Mukesh Ambani-led RIL was not immediately available for comments.
RIL had commenced arbitrary process against RCOM on Thursday and nominated Justice B P Jeevan Reddy, a former Supreme Court judge, as an arbitrator to resolve the disputes with RCOM.
RIL move came just a few days ahead of the July 21 expiry of the RCOM-MTN agreement for exclusive talks, which are aimed at creating an estimated $70-billion entity.
"RIL has commenced arbitration proceedings by nominating Justice B P Jeevan Reddy, a former judge of the Supreme Court, as an arbitrator for the resolution of the disputes."
On other hand, RCOM spokesperson said, "RIL's notice for arbitration proceedings is legally and factually unwarranted."
