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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The Companies Act will also have to be amended to take into account taxation and accounting implications for a dual-listed company. Looking ahead, the Indian government needs to think about the changes in our capital account regime that will facilitate the large cross-border transactions that Indian companies aspire to. Are you a Business Owner? The announcement that talks were being called off was made after the close of trading. We felt that the deal in its initial format was quite complicated and felt that the price being offered undervalued MTN itself.
India’s Bharti, South Africa’s MTN seek $61 billion merger
bhartj This was the case with the proposed MTN-Bharti merger, which required certain exchange control and other approvals. Log in Keep me signed in. But it has expressed an interest in Bhagti, a key MTN market. Your Reason has been Reported to the admin. Fill in your details: Drag according to your convenience. 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.
Infibeam calls off pact to acquire Snapdeal unit Unicommerce. 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. My Saved Articles Sign in Sign up.
The Bharti Group head had met the prime minister three times and held discussions with with finance minister Pranab Mukherjee as well as top government officials in a number of ministries. 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.
This will alert our moderators to take action. The South African rand slipped 2. Bharti and MTN said discussions were at an early stage and the firms had set an exclusivity deadline of July Choose your reason below and click on the Report button.
A full merger would need government and regulatory approval. As the government gradually opens up the capital account, issuing ordinary shares to overseas investors ought to be on the agenda.
Get instant notifications from Economic Times Allow Not now You can anr off notifications anytime using browser settings. This deal structure needed an approval from the government of South Africa, which has expressed its inability to accept it in the current form. Fortis again pushes back date to complete RHT Health deal; auditor resigns.
India’s Bharti, South Africa’s MTN seek $61 billion merger | Reuters
To see your saved stories, click on link hightlighted in bold. Bharti wished MTN management and its board success. NIFTY 50 10, 2. Bharti also indicated its gratitude to the Indian government for its support: We need to scale the Capital wall It was clear from the beginning that regulatory barriers would be the biggest obstacle in consummating the Bharti-MTN deal.
Foul language Slanderous Inciting hatred against a certain community Others. But the South Africans wanted assurances for the future, which the Indian government was not in a position mfn give as it said that allowing dual listing will need major amendments to key corporate laws and cannot be done in haste.
This is our second attempt at forging a deep and meaningful alliance with MTN.
Sensex finishes year above 36, posts third straight annual gain. Shares of Bharti ended flat in cautious trade at Rs He vharti go for something bigger than MTN. Ironically, the transaction under discussion did not involve any loss of national identity for MTN.
Neither Ambani could succeed in doing the deal. Additional reporting by C. In a press statement, the Indian telecom major said that if the deal goes through, it would be achieved through a scheme of arrangement, which would include the following principal elements:.
Some Indian analysts said the ,tn would not have embarked on new talks unless control issues had been settled. It is a very well considered move and there is a very strong rationale. But the risks of capital outflows may not be huge. RCom has snapped up a few small emerging-market assets and is believed to be considering more. Leave Your Comment s. In a press statement, the Indian telecom major said that if jtn deal goes through, it bharit be achieved through a scheme of arrangement, which would include the following principal elements: This also marks the seventh attempt by MTN to enter into a merger or strategic alliance with global communication majors.