MTN Group has commenced talks to take over Telkom according to statement confirmed by both companies. The carriers however note that the discussions are still in very early stages and there is no certainty it would be completed.
The proposed takeover would catapult MTN to be the leading telco in South Africa overtaking Vodacom. According to data from GSMA Intelligence, here is how the top three telcos rank according to subscriber numbers.
- •Vodacom – 51.4 million
- •MTN – 39 million
- •Telkom – 16.8 million
Bloomberg had first reported on MTN’s interest in taking over Telkom last year in November although they noted then that Telkom showed no interest in the deal. The deal is expected to come under the scrutiny of the regulator before any approvals as they would possibly create a duopoly in the market with the remaining players (Cell C and Rain) controlling about 10%.
Telkom South Africa is a partially state owned telco that is listed on the Johannesburg Stock Exchange as is MTN Group. Telkom’s shares jumped nearly 30% following the announcement on Friday, while MTN was up almost 4%.
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