News

The long-awaited merger between the telecom giants of the industrialising world, India's Airtel and South Africa's MTN, is set to stumble as South African politicians speak out against a full takeover of MTN.



Talks are due to conclude on September 30, but some South African ministers this week expressed concerns about surrendering a "strategic corporation" to foreign interests. The finance minister suggested that the two companies should consider a dual listing. According to some report, this is a proposal which is almost impossible under India’s existing laws and regulations, although the Indian government stated on Tuesday that it was open to such a proposal and the Indian finance minister confirmed that there was a legal provision for dual listing of companies.



Under the current proposal, Bharti would take a 49% stake in MTN, while MTN and its shareholders would end up with a 36% stake in Bharti in a cash-and-shares transaction valued at USD23bn.



Talks have already been extended twice.



Industry commentators look favourably on the possibility of a merger which would create a top 10 global mobile operator with 200 million customers in the world’s fastest growing markets of Africa, the Middle East and India.



UNI Africa's MTN Alliance will meet in October in Johannesburg.