India’s largest mobile phone company, Bharti Airtel, has resumed merger talks with South Africa’s MTN, a year after a previous plan to join up was abandoned. The two firms are in talks for Bharti to take a 49 percent stake in MTN, while the South African company would get a 36 per cent stake in the Indian business. According to the officials from the Brunswick Group, a communication group that talked to Business Times on behalf of the MTN Group, the discussions which were announced on the market on the May 25th, 2009 were still at their early stage. “At this stage, MTN has nothing further to add to the announcement which has been issued to the market on 25 May 2009. The discussions are at an early stage. MTN are in exclusive discussions with Bharti Airtel until 31 July 2009,” a statement sent from the Brunswick Group to Business Times said. Results from the negotiation will be announced after july 31st, 2009. Together they would become the world’s third biggest mobile phone firm, with more than 200 million customers. Talks failed last year due to a dispute over who would lead the merged group. The two firms, if they combine their annual revenues will sum up to more than $20 billion (Rwf11.3 trillion). If the two giant companies merge, they will both have tangible benefits including a bigger market exposure, access to innovative products and better buying power. Bharti signed a sponsorship deal with England’s Manchester United Football Club earlier this month. India and Sub-Saharan Africa are two of the world’s fastest growing mobile phone markets. MTN Group is a South Africa-based multinational mobile telecommunications company, operating in many African and Middle Eastern countries. It operates in over 22 countries in the world. Ends
