Dow Jones Newswires reported on Wednesday that India's Bharti Airtel had decided to end discussions with South Africa's MTN Group (MTN) to combine and create a telecom giant.

"This structure needed an approval from the government of South Africa, which has expressed its inability to accept it in the current form.

In view of this, both companies have taken the decision to disengage from discussion," Bharti said in a statement.

Bharti Airtel, India's largest mobile phone operator by subscribers, and MTN in May revived talks over a complex combination. Earlier talks last year broke down due to differences over the deal structure.

Exclusive talks between the two companies were extended twice already this year and were due to expire on Wednesday.

At 4.25pm MTN had given up 1.15 rand, or 0.93 percent, to 122.15 rand on the JSE.