MTN Eyes Telkom Takeover As Talks Could Resume In South Africa

MTN Group, Africa’s largest wireless carrier, is weighing a fresh move to acquire smaller South African rival Telkom after it walked away from the bid years back, according to sources familiar with the matter.

Telkom has reportedly consulted advisers to explore its options should a new bid emerge. Negotiations could begin before year-end, though sources cautioned that no deal is guaranteed. Both MTN and Telkom declined to comment on the matter.

This isn’t the first time MTN has pursued Telkom. Talks broke down in 2022 after disagreements over exclusivity and concerns about antitrust approval, which would have created South Africa’s most dominant mobile operator.

Telkom Shares Surge as Market Reacts to Potential Deal

Investor sentiment quickly responded to the takeover speculation. Telkom’s shares climbed as much as 16% to R56.9 in Johannesburg, marking the biggest intraday gain since July 2022. The stock has risen more than 40% since talks were abandoned two years ago, giving the company a current market value of about R25 billion ($1.4 billion).

In contrast, MTN’s stock dipped 0.8% to R138.7.

The renewed optimism follows Vodacom Group’s successful approval to acquire a stake in Remgro’s fibre business after years of regulatory scrutiny. This decision has fueled expectations that MTN could also secure approval for a Telkom merger.

What a Merger Could Mean for South Africa’s Telecom Industry

A merger between MTN and Telkom could reshape South Africa’s telecommunications sector, potentially closing the gap with market leader Vodacom, which is controlled by UK-based Vodafone Group.

The South African government has been pushing for better nationwide connectivity, especially in rural areas. Industry leaders argue that this requires shared infrastructure rather than costly duplication.

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To strengthen its deal-making capacity, MTN has tapped its Chief Financial Officer Tsholofelo Molefe — a former Telkom executive — to lead its mergers and acquisitions unit.

If successful, the deal would not only transform the competitive landscape but could also accelerate the government’s goal of expanding affordable connectivity across the country.

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