Bharti-MTN Called Off Once Again.....

The action has subsided again……. Bharti – MTN deal is again in abeyance. Let's take a look back to the snapshot of all action that took place till now….

It all started on 5^th May 2008 when MTN started first round of talks with Bharti Airtel. But it didn’t get through as both failed to agree on the controlling structure of the combined entity.

On 26^th May 2008 RCOM came into picture when it started a 45 day exclusive talks with MTN to discuss potential merging of their businesses. But due to differences between Ambani brothers the deal faced obstacles and failed.

In 2009, 25^th May Bharti and MTN revived the merger talks. This time around, to create a telecom giant that will be third largest in the world spanning Africa, Asia and West Asia. This deal was a strategic move towards Bharti’s plans of acquiring a global foot print.

Let us take a look at the operators first...

Bharti

Bharti Airtel is India's leading provider of GSM-based mobile services over 100 mn. subscribers with a integrated solutions portfolio of mobile, landline, broadband internet (telemedia), enterprise data, national and international long distance along with new additions of DTH and IPTV services.

Circle category	Subscriber base (Mn)	% contribution
Metros	12.4	12.9
'A' circle	36.2	37.4
'B' circle	31.9	33.0
'C' circle	16.2	16.7
Total Subscriber Base	96.7	100.0

Source: Company, COAI, Angel Research, Business India;

MTN
MTN Group is a South Africa-based communication service provider offering cellular-based services and business solutions. MTN has operations in 21 countries across Africa and the Middle East and is one of the largest emerging market mobile operators globally. It is the only national telecom operator controlled by South Africans.
The company at the end of March 31, 2009 had a total of 98.2mn mobile subscribers (MTN Group divides its operations into three major regions - South & East Africa (SEA), West and Central Africa (WECA) and Middle East and North Africa (MENA), with a majority of its subscribers, revenues and profits coming from the WECA region.
The current holding structure of MTN
where the PIC is an extremely powerful body owned by the South African government. It holds its stake in MTN after a black economic empowerment deal and Lebanon's Mikati family is a billionaire family by brothers Taha, 60 and Najib, 54.

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Subscribers growth (in millions)















Source: MTN


we shall analyze the deal in my next post........