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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This deal structure needed an approval from the government of South Africa, which has expressed its inability to accept it in the current form.
India’s Bharti, South Africa’s MTN seek $61 billion merger | Reuters
Devidutta TripathyGugulakhe Lourie. As an entrepreneur, you just move on. Looking ahead, the Indian government needs to think about the changes in our capital account regime that will facilitate the large cross-border transactions that Indian companies aspire to.
Leave Your Comment s. The South African rand slipped 2. It has been eyeing another big deal for mreger time and held failed talks last year with both Bharti and rival Bhartti Communications. It is a very well considered move and there is a very strong rationale. The South African giant has in the past been in failed discussions with the likes of Vodafone, China Mobile and Reliance Communications.
MTN deal off, what next for Bharti? – Livemint
The Companies Act will also have to be amended to take into account taxation and accounting implications for a dual-listed company. Never miss a great news story! But the Indian company has not totally given up, if its statement has is anything to go by.
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 bhzrti ministries. But it has expressed an interest in Nigeria, a key MTN market.
Bharti Airtel talks shift to full takeover of MTN
ET was the first paper to flag off the issue of mrn listing as a major stumbling block for the deal in its edition dated July 31, Chandrajit Banerjee, director general, Confederation of Indian Industry, said: This will alert our moderators to take action Name Reason for reporting: A full merger would need government and regulatory approval. But the risks of capital outflows may not be huge. The deal was complicated. Ironically, the transaction under discussion did not involve any loss of national identity for MTN.
We see real power in the combination and we will work hard to unleash it for all our shareholders. Get instant notifications from Economic Times Allow Not now. To see your saved stories, click on link hightlighted in bold.
Bhaeti MTN deal not going through should not be seen as a dampener. He will go for something bigger than MTN. 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. NIFTY 50 10, 2. It wanted an assurance from the Indian government that it would amend laws to allow DLCs.
Bharti Airtel-MTN $ 24 billion deal called off
Fill in your details: In a press statement, the Indian telecom bjarti said that if the deal goes through, it would be achieved through a scheme of arrangement, which would include the following principal elements: Get instant notifications from Economic Times Allow Not now You can switch off notifications anytime using browser settings.
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.
South African communications minister Siphiwe Nyanda said before the announcement on Wednesday that MTN should remain a domestic company. We probably have more money flowing out due to over and under-invoicing on the trade account.
That would have meant investors selling other assets to comply with limits. Thu, Oct 01