ONEIC calls off Oman utility billing firm merger

MUSCAT (Reuters) - Power maintenance firm Oman National Engineering & Investment Co. NELE.OM decided not to proceed with a merger with a rival Omani utility billing firm, after receiving new contracts from the state, it said on Sunday.

In September, ONEIC had been approached by Oman Investment & Finance OIFL.OM for an all-share merger that would consolidate operations and expand their networks.

An ONEIC official told Reuters that the company called off the merger after securing about a dozen new contracts from the government worth 23.5 million rials ($61.05 million).

"We are now expanding in so many other areas other than just billing and these contracts awarded since September change our minds toward the merger," he said.

ONEIC mainly won contracts to maintain the government's power plants, including the 12 million rial maintenance deal awarded by state-run Petroleum Development Oman in September.

ONEIC said in a statement on the Muscat bourse that committees from the two firms met on December 26.

"The committee formed by ONEIC informed that ONEIC is not interested to move forward on the proposed merger based on report submitted by the external consultant appointed by (ONEIC)," the statement said.

(Reporting by Saleh Al Shaibany and Amran Abocar; Editing by Martin Dokoupil)