After more than a year of on-and-off negotiations, India’s Bharti Airtel and South Africa’s MTN Group appear to be close to striking a deal that could lead to a tie. Bharti Airtel shares jumped as much as per cent on Thursday on news that it had called off merger talks with MTN after the two companies. The SOUTH AFRICAN government said that it supported the proposal merger of Bharti-Airtel and the MTN group in principle. The Indian Government agreed.
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We see real power in the combination and we will work hard to unleash it for all our shareholders. But the risks of capital outflows may not be huge.
Never miss a great news story! We need to scale the Capital wall It was clear from the beginning that regulatory barriers would be the biggest obstacle in consummating the Bharti-MTN deal.
Foul language Slanderous Inciting hatred against a certain community Others. Bharti and MTN said discussions were at an early stage and the firms had set an exclusivity deadline of July MTN, which had Are you a Business Owner?
Choose your reason below and click on the Report button. This also marks the seventh attempt by MTN to enter into a merger or strategic alliance with global communication majors.
Some Indian analysts said the firms would not have embarked on new talks unless control issues had been settled. Chandrajit Banerjee, director general, Confederation of Indian Industry, said: While dual listing is a step towards capital account convertibility, it is not necessarily a giant one.
Telecom News Telecom Policy. Indian telecom major Bharti Airtel has informed the exchanges that it is in talks to pick up a stake in MTN, Africa’s largest mobile group. Get instant notifications from Economic Times Allow Not now.
This was the case with the proposed MTN-Bharti merger, which required certain exchange control and other approvals. Bharti has not given up yet In the end, the politics of national pride derailed the deal as South Africa did not want MTN to lose its independent identity.
This will alert our moderators to take action. The Bharti Group head had met the prime minister three times and held discussions with with finance minister Pranab Mukherjee as well as top government officials in a number of ministries.
Such arrangements are also seen protecting the national identities of companies. Your Reason has been Reported to the admin.
Bharti Airtel, South Africa’s MTN In $23 Billion Merger Deal
Fill in your details: There are targets that Bharti could pursue, analysts said. It is a very well considered move and there mwrger a very strong rationale.
However, some analysts voiced doubt as to whether a deal would be sealed after similar talks collapsed last year. In a press statement, the Indian telecom major said that if the deal goes through, it would be achieved through a scheme of arrangement, which would include the following principal elements:. Log in Keep me signed in. But the South Africans wanted assurances for the future, which the Indian government was not in a position to give as it said that allowing dual listing will need major amendments to key corporate laws and cannot be done in haste.
MTN shareholders would take another 11 percent of Bharti. The South African rand slipped 2. Thereafter, the MTN board met and formally called off the deal. Will be displayed Will not be displayed Will be displayed. The Companies Act will also have to be amended to take into account taxation and accounting implications for a dual-listed company. NIFTY 50 10, 2. Bharti wished MTN management and its board success.
The South African giant has in the past been in failed discussions with the likes of Vodafone, China Mobile and Reliance Communications. Naturally, friends and well-wishers of Sunil Mittal are disappointed.
This is our second attempt at forging a deep and meaningful alliance with MTN. Thu, Oct 01 In a press statement, the Indian telecom major said that if the deal goes through, it would be achieved through qnd scheme of arrangement, which would include the following principal elements: It wanted an assurance from the Indian government that it would amend laws to allow DLCs.
Bharti Airtel, South Africa’s MTN In $23 Billion Merger Deal | VCCircle
Bharti also indicated its gratitude to the Indian government for its support: Although it is one of the few companies whose name has not been linked with Zain, Bharti could expand into several African markets with a stake in Zain or its African operations. He will go for something bigger than MTN. It has been eyeing another big deal for some time and held failed talks last year with both Bharti and rival Reliance Communications. The announcement also disappointed South African markets.
Trading equity stakes would give both firms exposure to new markets ripe for growth, while a full merger would yield cost savings, allow for technology sharing, and provide the financial muscle for more expansion, analysts say.
It is premature to conclude that Bharti had reached the end of the road for its overseas acquisition plans, said Monish Chatrath, executive director and head of risk advisory services and markets leader at consultancy Mazars. Get instant notifications from Economic Times Allow Not now You can switch off notifications anytime using browser settings. Ironically, the transaction under discussion did not involve any loss of national identity for MTN.
India’s Bharti, South Africa’s MTN seek $61 billion merger
mfn Shares are a common currency for acquisition and Indian companies would be shut bharyi of overseas buyout opportunities if they are not allowed to issue them. Fortis again pushes back date to complete RHT Health deal; auditor resigns.
Sensex finishes year above 36, posts third straight annual gain. South African communications minister Siphiwe Nyanda said before the announcement on Wednesday that MTN should remain a domestic company. Bharti said the deal would be discussed exclusively till July.