MTN Group has dismissed reports suggesting it is currently in negotiations to acquire Telkom, saying no formal discussions are underway. Group Chief Executive Officer Ralph Mupita clarified that while preliminary engagements had taken place in the past, there are no active talks at this stage, Reuters reported.
The clarification followed a Bloomberg report earlier this week that hinted MTN might revisit a potential acquisition, sending Telkom shares up by 13% before sliding back 8% the next day. Mupita noted that MTN remains open to industry consolidation opportunities, particularly in fibre broadband, but any deal would have to align with the company’s financial framework, the outlet noted.
The telecoms giant has long argued for a reduction in the number of mobile operators in South Africa, ideally from four to two, to strengthen competition and efficiency. Mupita further explained that MTN sees fibre expansion as essential but prefers partnerships or acquisitions over developing infrastructure from scratch, Reuters highlighted.
