Tanzania: Millicom Group seeks concurrence of Competition Commission to acquire remaining 15% of Zantel

The Luxembourg telecom group, Millicom International Cellular (MIC), now wants to take control of the entire mobile operator Zanzibar Telecom, of which it holds an 85% stake, since 27 October 2015 The company that operates under the Tigo brand, entered into the Zantel shareholding after an agreement with Etisalat Group, has indeed requested the concurrence of the Competition Commission to make this acquisition.

The remaining 15% of the current fifth telecom operator, which Millicom targets, is owned by the Zanzibar government, which is in favor of the operation whose financial value is not disclosed.

In a statement, the Competition Commission said it is currently investigating the intentions of both parties behind this acquisition. In addition to all of Zantel, MIC also wants, during the same operation, to acquire Telesis Tanzania Limited, Zantel’s subsidiary specializing in the provision of 4G broadband services to telecom operators. It will guarantee a high quality service by which a greater number of consumers will be seduced.

According to the latest Tanzanian telecom market statistics released by the Tanzania Communications Regulatory Authority (TCRA) in June 2018, the country had 41.8 million mobile subscribers. Tigo claimed second place in the market, behind Vodacom, with 29% of shares for 12,006,568 consumers. Zantel, with a 2% market share, had 1,071,586 customers. 

Source: Agence Ecofin