08 November 2019
The chief executive officer of MTN South Africa warned that the nation’s economy could take a hit if troubled Cell C failed, as the former continues to be linked with acquiring its rival.
Speaking to South African financial newspaper Business Report, Godfrey Motsa said MTN would offer aid to its rival if there was a clear economic value to the move, highlighting the potential loss of thousands of direct and indirect jobs if Cell C collapsed.
He also cited a broader ecosystem of suppliers along with the loss of taxes as examples.
If MTN did enter the race, it would go head-to-head with local rival Telkom and the world’s biggest mobile operator, China Mobile, which reportedly opened discussions with Cell C regarding an acquisition in early October.
Telkom abandoned a previous takeover bid in 2017, but is apparently again keen on pursuing a deal.
Although MTN and Cell C remained coy on the status of talks, the former reportedly confirmed a fresh roaming deal was close to being agreed.