Regulatory roadblocks have put Telstra's (ASX: TLS) latest acquisition on the chopping block. The company announced Tuesday that its plans to acquire South Australia-based Internet Service Provider Adam Internet have run out of time.
Telstra first announced its intentions to buy out Adam Internet last October, pending regulatory approval from the Australia Competition & Consumer Commission (ACCC). The Commission raised several concerns that, according to Tesltra, weren't able to be addressed by the acquisition agreement's 30 June cut-off date.
"We are very disappointed by this outcome," said Telstra Chief Customer Officer Gordon Ballantyne in a statement. "We believe this transaction would have provided real benefit to Australian consumers and would have added new competition into the broadband market."
Adam Internet Executive Chairman Greg Hicks shared similar sentiments: "Adam Internet is disappointed this important condition precedent could not be achieved in a commercially acceptable time frame, and therefore we will no longer be proceeding."
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Motley Fool contributor Justin Loiseau has no position in any stocks mentioned in this article. You can follow him on Twitter @TMFJLo.
