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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Some Indian analysts said the firms would not have embarked on new talks unless control issues had been settled. 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 airrtel. This was the case with the proposed MTN-Bharti merger, which required certain exchange control and other approvals.
But the Indian company has not totally given up, if its statement has is anything to go by. It has been eyeing another big deal for some time and held failed talks last year with both Bharti and rival Reliance Communications. Infibeam calls off pact to acquire Snapdeal unit Unicommerce.
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The potential transaction, when completed, would be expected to create value for Bharti shareholders, the release said. We felt that the deal in its initial format was quite complicated and felt that the price being offered undervalued MTN itself. There are targets that Bharti could pursue, analysts byarti. It is a very well considered move and there is a very strong rationale.
The Companies Act will also have to be amended to take into account taxation merfer accounting implications for a dual-listed company.
Bharti Airtel-MTN $ 24 billion deal called off
Shares of Bharti ended flat in cautious trade at Rs But it has expressed anx interest in Nigeria, a key MTN market. Shares are a common currency for acquisition and Indian companies would be shut out of overseas buyout opportunities if they are not allowed to issue them.
That would have meant investors selling other assets to comply with limits. Drag according to your convenience. Such arrangements are also seen protecting the national identities of companies.
However, some analysts voiced doubt as to whether a deal would be sealed after similar talks collapsed last year. A full merger would need government and regulatory approval.
Your Reason has been Reported to the admin. The deal was metger.
India’s Bharti, South Africa’s MTN seek $61 billion merger | Reuters
This also marks the seventh attempt by MTN to enter into a merger or strategic alliance with global communication majors. 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. Fill in your details: Additional reporting by C.
This will alert our moderators to take action. Bharti also indicated its gratitude to the Indian government for its support: Devidutta TripathyGugulakhe Lourie.
The South African rand slipped 2. Bhartl will alert our moderators to take action Name Reason for reporting: As an entrepreneur, you just move on. Fortis again pushes back date to complete RHT Health deal; auditor resigns.
The exclusive talks had been extended twice since they started on 25 May, a year after the two phone firms gave up their first merger attempt. 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.
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This is our second attempt at forging a deep and meaningful alliance with MTN. The Thomson Reuters Trust Principles. Naturally, friends and well-wishers of Sunil Mittal are disappointed.
Sensex finishes year above 36, posts third straight annual gain. Bharti and MTN said discussions were at an early stage and the firms had set an exclusivity deadline of July In a press statement, the Indian telecom major said that if the deal goes through, it would be achieved jerger a scheme of arrangement, which would include the following principal elements: He will go for something bigger than MTN.