Original article Total Telecom:Read More
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A tie-up between the South African telcos would create the country’s largest mobile player
This week, a report from Bloomberg suggests that MTN are once again considering making another takeover bid for rival telco Telkom.
According to anonymous sources, MTN is considering re-entering negotiations, while Telkom is in discussions with advisers over how to handle a potential offer.
The same sources suggest that formal negotiations could begin before the end of the year, however this is not guaranteed.
The combination of MTN and Telkom would create South Africa’s largest mobile player, with roughly 63 million subscribers, pipping the current market leader, Vodacom. As such,
MTN first approached Telkom regarding a potential takeover back in 2022. However, these discussions ultimately collapsed amid concerns over exclusivity and the heavy antitrust scrutiny the move would likely face.
This regulatory pressure will likely remain, but MTN is likely hopeful that the government watchdog will be more favourable this time, given the recent regulatory approval of Vodacom’s acquisition of a stake in Remgro Ltd.’s fibre business.
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