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More Africa NewsTelkom South Africa says deal with MTN possible if structured well

November 12, 2021by myles0

Telkom CEO Sipho Maseko said a deal with MTN is possible if structured correctly and if the benefits are highlighted, MyBroadband reported. Maseko said there is no deal he is looking at or evaluating, adding that there is nothing on his table that is worth evaluating. The remarks came after Bloomberg reported on 08 November that MTN made a takeover approach for Telkom.

MTN said there is “no deal on the table in relation to this matter”, which was confirmed by Maseko in a recent interview with Moneyweb,. Should MTN try to acquire Telkom, it would require approval from regulators including the Competition Commission and the Independent Communications Authority of South Africa. MTN and Telkom are the second and third largest mobile operators in South Africa.

Maseko is confident that a deal between MTN and Telkom would receive the necessary regulatory approvals if structured correctly. Consolidation is inevitable at some point in the market, probably in the next two years or so, Maseko said.

Commenting on regulatory approvals, he said all deals are possible if they are packaged correctly. He said a potential deal with MTN may raise concerns about spectrum concentration or about limiting competition.


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