KUALA LUMPUR, JUNE 13: Dominant fixed-line provider Telekom Malaysia Bhd said on Monday its proposed acquisition of a stake in India’s Idea Cellular Ltd had lapsed after failing to secure regulatory approval.

Telekom, together with Singapore Technologies Pte Ltd, had planned to buy a 47.7% stake in Idea Cellular, India’s fifth largest mobile phone operator, for $390 million.

“The proposed transaction has lapsed as approvals from the Department of Telecommunications and the Foreign Investment Promotion Board of India required for the proposed acquisition were not obtained by June 11, being the latest date specified in the transaction documents,” Telekom said in a statement.

A Telekom spokeswoman told Reuters the lapse date related to an agreement between Telekom and its consortium partner, Singapore Technologies. “Under the current terms of the transaction, the deal is terminated,” she said, but did not comment further.

Telekom said last month the regulator’s concerns were that the deal could infringe Indian rules by potentially giving Singapore state investment arm Temasek Holdings a presence in two telecom companies in the same region.

Temasek is a shareholder in Telekom’s deal partner as well as in Singapore Telecommunications, which has a 28% stake in Bharti Tele-Ventures Ltd, India’s top listed mobile phone services firm. Telekom said it was reviewing all its options regarding its investment strategy in India and the region, but did not elaborate.

—Reuters