Sep 22, 2009

Bharti-MTN deal likely to be finalized this Weekend

The Bharti-MTN deal is now in its last lap. However, actual moves such as initialing the indicative agreement would be possible only post the scheduled MTN board meet on September 27. However, the deal may take another three months after it's announced to get a nod from the South African Competition Commission.

MTN is required to intimate the competition commission of South Africa on a change in control which will then take 40 days to 2 months to give its go-ahead.

The CCSA will also recommend deal to competition tribunal which in turn will take a month to come to a decision. Thereafter the competition tribunal will hold a public hearing on the deal.

Meanwhile, a team from South Africa comprising the treasury and Central Bank officials are expected to land in India soon.

This is perhaps the mandatory and the last official level visit prior to an announcement on the deal. Over the weekend, there had been talks between Mr Phuthuma Nhleko and Sunil Mittal and according to sources these went off very well. All the matters as far as the two companies are concerned are over and resolved and now it is only the process of approvals that is required. So the visit of the South African official delegation which begins tomorrow, they first come to Bombay and then come to Delhi, has to be seen in this light.



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