MTN Group, Africa’s largest wireless carrier, is considering reopening acquisition talks with smaller South African rival Telkom, according to people familiar with the matter.
Why it matters
A deal would reshape South Africa’s telecom landscape, creating a stronger competitor to Vodacom, the market leader controlled by Vodafone.
State of play
- MTN abandoned talks in 2022 over exclusivity disputes and concerns about antitrust approval.
- Telkom’s valuation has since climbed to about 25 billion rand ($1.4 billion), up more than 40% since the collapse of those talks.
- Both companies have declined to comment on the renewed interest.
Zoom out
- Vodacom recently secured a stake in Remgro’s fiber business after long negotiations with competition regulators — a move that may have encouraged MTN to believe approval for a Telkom deal is possible.
- South Africa’s government is pushing for better connectivity, especially in rural areas, and operators argue that avoiding duplicated infrastructure is critical to making such investment viable.
Between the lines
MTN has strengthened its deal-making arm by placing CFO Tsholofelo Molefe — a former Telkom executive — in charge of its mergers and acquisitions unit.
What’s next
The two companies could begin negotiations before year-end, but there’s no guarantee of a deal.
Source: Bloomberg
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