The Indian telecom giant Bharati Airtel and South Africa’s MTN Group Limited has planned on a merger aiming to tap the emerging markets. The merger would help both the company gross revenue of $ 20 billion. Together with the fat profits, the customer base of over 200 million subscribers combining both the company is quite a bonus.
The merger would be able to tap the markets in the Middle East, South Africa and the Indian subcontinent. The expansion strategy would allow Bharati to serve India and expand its business in Asia. MTN would tap the markets in Africa and Middle East. Bharati is to acquire 49 percent stake in MTN while MTN is to take over only 36 percent in Bharati. This merger is first of its kind between African and Indian business. Further talks are to be held in the 31st of July, 2009. The business opportunity is tremendous once the deal is closed and official. Considering the interest of both the parties, the merger is advantageous to increase the footprints in the world’s fastest growing wireless markets, namely India, Africa and Middle East.
Via: CNN
