In a significant development, the South African government on Monday gave in-principle approval to a $23-billion cash-cum-share-swap deal being discussed between Bharti Airtel and South Africa?s MTN. Pretoria?s backing comes as a shot in the arm for the talks, which have been extended until September 30.
As already reported, if the deal materialises, it would create the world?s third-largest mobile firm with over 200 million subscribers and revenues exceeding $20 billion. ?The government in-principle supported the proposed transaction,? said Tiyani Rikhotso, a spokesman for South Africa?s communications department, in Johannesburg.
?I don?t see any reason why anybody will want to stand in the way of what will benefit the people of the two countries,? he added.
Last week at an Idea Exchange Programme organised by The Express Group, finance minister Pranab Mukherjee had said he saw no Indian regulatory hurdles coming in the way of the deal.