Airtel May Acquire Etisalat Nigeria

Segun Atanda/

Airtel Nigeria has been linked with possible acquisition of rival Etisalat, which has formally rebranded as 9mobile.

Media reports in India claim, Airtel’s parent company, India’s Bharti Airtel is looking to merge its Nigerian arm with embattled 9mobile, whose owners, Emerging Markets Telecommunication Services. were forced to rebrand following financial problems.

Bharti Airtel is, reportedly, considered a potential bidder for Etisalat Nigeria, due to the Indian firm’s long held desire to boost its assets in the country.

Nigeria is currently Bharti Airtel’s largest African market, generating around 30 percent of its revenues in the region.

According to a report by the Economic Times of India, Airtel views the collapse of Etisalat Nigeria – and the withdrawal of Etisalat itself – as a potential opportunity for consolidation.

Reports also claim Bharti Airtel’s Chairman, Sunil Mittal, has previously spoken of the potential for mergers in some of its African assets as part of a rationalisation plan.

The company is also said to be concerned that despite Nigeria being a major market, it has not broken into the top two bracket of the telecoms industry in the country, since it bought Zain Group’s sub-Saharan Africa assets.

It, therefore, believes acquiring 9mobile would see it leapfrog Globacom and give it the clout to compete with market leader, MTN.

Economic Times of India also quoted Bank of America Merrill Lynch as saying in a note to clients: “Nigeria is Bharti’s (Airtel) largest Africa market, where a potential consolidation opportunity is arising with Etisalat Nigeria looking for buyers after having failed to service debt obligations.”

Aside Airtel, both Orange and Vodafone have also been linked with 9mobile, in media reports.

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