Telstra Corporation Limited drops out of talks with San Miguel Corporation (SMC) for a possible wireless joint venture in the Philippines, The Australian reported, Monday, March 14.
Telstra, the largest telecommunications and media provider in Australia, was in talks for a $1 billion investment with SMC. The partnership could have broken the telecommunications duopoly by Philippine Long Distance Company (Smart-PLDT) and Globe Telecom.
“Both SMC and Telstra worked hard to come up with an acceptable resolution to some issues. However, we agreed we can no longer continue with the talks. I believe this is best for all parties,” Ramon S. Ang, SMC president and COO said in a statement.
Ang said the SMC will push through with its entry in the telecommunications market, even without a partner, as reported by Inquirer.net on March 12.
Telstra Chief Executive Andrew Penn said the investment was attractive, but the two entities could not reach commercial arrangements.
“We have great respect for San Miguel Corporation and its President Mr. (Ramon) Ang, it was obviously crucial that the commercial arrangements achieved the right risk-reward balance for all involved,” Penn said, as reported by The Australian.
However, the Australian telecommunications company remains keen in investing in Asia as part of its strategy.
Talks between the two started on August 2015, after Telstra announced its interest in the local market. SMC has also been hounded with its ownership of the much disputed 700 MHz spectrum, which it needs to set up its broadband service. Both PLDT and Globe have aired their disapproval of the acquisition and have lobbied for its distribution.– Elyssa Christine Lopez