Issues with mainland regulators have left China Mobile’s (0941) acquisition proposal for HKBN (1310) in limbo, according to Sing Tao Daily.

More than two months have passed since the offer to acquire the local broadband service provider, but mainland regulatory authorities have yet to provide any feedback on the approval process, The Standard's sister newspaper reported, citing sources.

Even as a state-owned enterprise, China Mobile is not guaranteed to secure approval, the report said, adding that the telecom giant had previously submitted antitrust documents to the Office of the Communications Authority and made smooth progress locally.

The Chinese telecom firm will need to win nods from regulators that include the National Development and Reform Commission, the Ministry of Commerce, and the State-owned Assets Supervision and Administration Commission of the State Council before the transaction can proceed, according to the offer. Also, once the acquisition goes ahead, it does not necessarily mean a substantial diminishing of competition in Hong Kong.