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Cellcom said it had not yet been given reasons for the decision,
but would consider its options when it gets them.
Cellcom agreed to buy Golan for 1.17 billion shekels ($305
million) last November but the deal has faced political
opposition and regulatory hurdles.
One of five mobile network operators in Israel, Golan launched
in 2012 when the government issued new licenses to boost
competition in a sector that had been dominated until then by
three players.
Golan offered rock-bottom prices that its competitors have
struggled to meet and has taken about 10 percent of Israel's
mobile market.
Golan, owned by French businessmen Michael Golan and Xavier Niel,
has said rejecting the deal would have a negative impact on the
market and cause prices to rise.
But Finance Minister Moshe Kahlon, who was responsible for
opening up the cellular market as communications minister, fears
that losing one player would lead to higher prices.
Consumers give Golan much credit for offering packages that
include unlimited international and local calling, text messages
and 6 GB of Internet surfing starting at $8 a month. Such prices
have dented the profitability of Cellcom and its rivals.
As part of its license, Golan is required to enter into a
network-sharing agreement with Cellcom or build its own.
Earlier this year, Niel said Golan had no choice but to merge
with another player since a plan to share Cellcom's network was
not approved by regulators while municipalities in Israel
refused to approve the installation of more antennas.
(Reporting by Tova Cohen; editing by Susan Thomas)
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