By 
MTN Group is weighing the possibility of restarting acquisition talks with Telkom, raising fresh speculation about a potential consolidation in South Africa’s telecommunications sector. According to Bloomberg, the discussions—which stalled previously—could resume before year-end, although there is no certainty that a deal will be concluded.
MTN first expressed interest in acquiring Telkom in July 2022 but withdrew after Telkom’s board opted to explore a potential merger with Rain, a wireless broadband startup. That transaction ultimately collapsed, leaving the door open for renewed negotiations.
Market reaction has been swift. Following reports of MTN’s renewed interest, Telkom’s shares surged more than 13% on the Johannesburg Stock Exchange, closing at R55.56, reflecting strong investor appetite for a potential deal.
Industry observers note that a merger between MTN and Telkom could significantly reshape the competitive landscape, combining MTN’s scale with Telkom’s extensive infrastructure to deliver broader mobile and fibre broadband services. Telkom’s fibre subsidiary, Openserve, controls nearly 170,000 kilometres of network, positioning it as the country’s second-largest home fibre provider. However, Telkom’s management has made clear that Openserve is not up for sale.
Despite the strategic potential, substantial hurdles remain. The South African government holds a 40.5% stake in Telkom, meaning its approval will be essential to any transaction. In previous negotiations, a lack of clear government backing was a major obstacle, and analysts suggest that regulatory and political considerations could once again complicate proceedings.
Telkom has also been actively evaluating its portfolio. Earlier this year, it engaged Bank of America to assess potential interest in parts of its business, although no divestments have been finalised.
If successful, an MTN–Telkom tie-up would strengthen MTN’s market leadership and expand its service offerings, with significant implications for South Africa’s connectivity and digital economy. Still, the path to agreement will depend on complex negotiations and government approval, leaving the market waiting to see whether the renewed talks translate into a concrete deal.
Comments