Will MTN Group proceed with the planned acquisition of Telkom?


According to Taukobong, a final acquisition offer is expected in the coming months. However, it is unclear whether MTN would make the offer.

When news first broke in July that MTN was interested in acquiring the smaller rival, the two companies warned stakeholders there was no guarantee of a deal at the end of negotiations In progress.

Meanwhile, Business Insider Africa reported that the acquisition would benefit MTN Group, boosting its competition against rival group Vodacom.

Although MTN Group operates in more than 20 countries and generates much of its group’s revenue overseas, its presence on the home front is somewhat behind the shadow of Vodacom Group. Hence the need to expand its share of the South African market. And a merger/acquisition would present Telkom with an excellent opportunity to do so.

So far, there has been no mention of the exact cash consideration for the deal. However, there is speculation that it is a stock/cash and stock arrangement.

If the deal is to go through, there is a hurdle that MTN Group may have to clear. Analysts have pointed out that the deal would create a duopoly between MTN Group and Vodacom. And that, in turn, would raise concerns about fair competition in the telecommunications industry in South Africa. Therefore, MTN may find it difficult to convince regulators otherwise.


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