A merger between South Africa’s MTN and Reliance Communications of India could be back on the table, according to various reports.
The Financial Times reported that an MTN board meeting was expected to take place on June 1 and the idea of reigniting…
A merger between South Africa’s MTN and Reliance Communications of India could be back on the table, according to various reports.
The Financial Times reported that an MTN board meeting was expected to take place on June 1 and the idea of reigniting talks with the Indian company could be on the agenda.
MTN has been in ongoing discussions with Orascom over the possible acquisition of its assets in Africa but this process has been complicated by the stubborn resistance if the Algerian government to MTN’s acquisition of the jewel in Orascom’s African crown, Djezzy.
In 2008 MTN and Reliance came close to agreeing a merger that would have seen Reliance chairman Anil Ambani swapping a 67% stake in the Indian firm for MTN shares. If a similar deal were to be discussed again then Ambani could end up with a stake of around 25% in MTN. Two years ago, however, a feud between Ambani and his brother Mukesh scuppered the deal.
On that occasion MTN was advised by Merrill Lynch, while Reliance was being advised by Lehman Brothers and Lazard. Deutsche Bank had a role on both sides.
The South African government is intent on retaining control of MTN, which is seen as a national asset of great importance and prestige.