What does the CEO of a company do when its best growth years are behind him, when the recessionary times fear even the greatest of the visionaries? If you're Sunil Mittal, who runs giant Bharti Airtel, in the world's fastest growing telecom market, you go shopping.
MTN would have been a significant acquisition target for many Telecom players as it is present in many developing countries and showing an impressive revenue growth of almost 40%, even higher than Bharti Airtel.
The deal if happens will provide long term benefits to Bharti Airtel as it would be able to ride the emerging market bullishness with the help of MTN, and creat a telecom powerhouse for the economies in making. The overall efficiency of Bharti would come in handy while managing the global behemoth operations and thus taking its India growth story forward to the whole world.
The deal came at right time for Bharti when after recently acquiring its 100 millionth subscriber, it could see that next 100 million customers would be far more difficult for Bharti to bring in.
MTN would have been a significant acquisition target for many Telecom players as it is present in many developing countries and showing an impressive revenue growth of almost 40%, even higher than Bharti Airtel.
The deal if happens will provide long term benefits to Bharti Airtel as it would be able to ride the emerging market bullishness with the help of MTN, and creat a telecom powerhouse for the economies in making. The overall efficiency of Bharti would come in handy while managing the global behemoth operations and thus taking its India growth story forward to the whole world.
The deal came at right time for Bharti when after recently acquiring its 100 millionth subscriber, it could see that next 100 million customers would be far more difficult for Bharti to bring in.
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2 comments:
It makes sense for MTN too as it can leverage Bharti's frugal methods in running the operations while taking the competition head on in Africa.
A year passed and Bharti n MTN are back to the negotiating table which spells promise for the deal. This deal is a superb opportunity for Bharti to enter into a lesser-penetrated market like Africa (thanks 2 MTN), especially when the company is generating free cash flows. Further its damn critical for the company’s next phase of expansion and catapult it to become double its size. BUT the 21 African, Middle East and Asian countries that MTN operates in are regulatory minefields and could pose both a potential speedbreaker as well as a challenge for Bharti. The proposed transaction will require regulatory approvals in India, South Africa and countries in which MTN operates.Further after the stock-swap, bharti shd make sure not 2 be tagged as a foreign owned company or else that would jeopardise its organized retail plans in India.
MANY QUESTIONS MANY OPTIONS 1 DEAL !! Sounds interesting.
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