Bharti Airtel is in talks with rival Millicom International Cellular for a possible merger in Ghana, as India’s No. 1 telecom operator, embroiled in a brutal tariff war in its home market, tries to find ways to improve operations in Africa where it has yet to make a profit since entering the continent in 2010.
Any such merger would see the combined entity replacing Vodafone to become the second largest telecom operator in Ghana, an intensely competitive market led by South Africa-based MTN.
“The two companies are in discussions for a possible joint venture wherein both companies could hold equal share,” one of two people, who confirmed the talks to ET, said.
The second person said while all consolidation possibilities were on the table, one of the options being considered was similar to what Airtel stitched together with Malaysia’s Axiata in Bangladesh. Airtel has just concluded merging its operations with Axiata in the neighbouring country, under which the Indian telco owns a 25% stake in the combined entity with the partner holding more than 68%.
While Airtel declined to comment on the talks in Ghana, Millicom, which operates under the brand of Tigo in five African markets including Ghana, didn’t respond to an email seeking comment.
Airtel Ghana contributes 6-7% to Bharti Airtel’s Africa revenue, which totaled close to $900 million for the July-September quarter. Net loss for Airtel’s Africa operations narrowed during the quarter to $91 million from $170 million a year earlier.
Any such merger would see the combined entity replacing Vodafone to become the second largest telecom operator in Ghana, an intensely competitive market led by South Africa-based MTN.
“The two companies are in discussions for a possible joint venture wherein both companies could hold equal share,” one of two people, who confirmed the talks to ET, said.
The second person said while all consolidation possibilities were on the table, one of the options being considered was similar to what Airtel stitched together with Malaysia’s Axiata in Bangladesh. Airtel has just concluded merging its operations with Axiata in the neighbouring country, under which the Indian telco owns a 25% stake in the combined entity with the partner holding more than 68%.
While Airtel declined to comment on the talks in Ghana, Millicom, which operates under the brand of Tigo in five African markets including Ghana, didn’t respond to an email seeking comment.
Airtel Ghana contributes 6-7% to Bharti Airtel’s Africa revenue, which totaled close to $900 million for the July-September quarter. Net loss for Airtel’s Africa operations narrowed during the quarter to $91 million from $170 million a year earlier.
