Telecoms company, MTN Group, is considering reviving its plans to acquire South African telecoms company and rival, Telkom. This follows MTN’s decision to walk away from negotiations to buy the company in 2022.
According to Bloomberg, the project is part of the group’s plan to broaden its footprint and bring about dominance in the African telecommunications space. Currently, MTN Group has 298 million subscribers across its 15 African markets. Acquiring Telkom SA’s 23 million subscribers will be a significant addition to its base.
According to reports, Telkom has been in touch with experts and advisers on both sides to see if a new takeover bid is launched. While the two companies are expected to launch new negotiations by the end of 2025, there’s no guarantee that the deal will be successful.
When the two companies launched negotiations three years ago, the deal fell through following signals that they might not win antitrust approval. They feared the deal would be declined as it might potentially create a dominant mobile network operator and, in turn, overpower other players in the market.
The SA Competition Commission and Competition Tribunal work to ascertain whether any merger or takeover deal aligns with fairness and just operation in the industry. At the time, there were fears that the takeover deal might see MTN as a dominant player in the South African telecom industry, with rivals such as Vodacom and Cell C.
Since the deal collapsed in 2022, Telkom’s share price has seen more than a 40% rise, and the company is currently valued at about $1.4 billion. For MTN, it will be hoping that a renewed negotiation can ignite different perspectives and look to convince antitrust agencies that the potential acquisition is not a threat to other telecoms players in SA.
In addition, MTN’s renewed interest is related to the recent approval of Vodacom Group Ltd. to take a stake in Remgro Ltd.’s fibre business. After years of negotiations, the country’s competition authorities okayed the deal. The decision gave MTN confidence that a combination with Telkom is possible.
To increase its chances, the group has placed its Chief Financial Officer, Tsholofelo Molefe, a former Telkom executive, at the head of its mergers and acquisitions unit.
Also Read: MTN edges Vodacom in voice network quality across South Africa in 2025 report.
What the potential deal means for MTN in SA
As a leading telecoms operator in Africa, MTN is setting its sights on expanding its offering across its base. Acquiring Telkom will see it close down one of its competitors and focus on its rivalry with the likes of Vodacom and Cell C.
MTN’s closest rival, Vodacom, which is the country’s leader in the industry and controlled by the UK’s Vodafone Group PLC, is giving MTN some stiff competition. In the market, Vodacom leads with over 52 million subscribers while MTN controls 39.9 million as of March 2025. Telkom holds 23 million, while Cell C has the least share with 7.7 million subscribers.
Global data also revealed that Vodacom is expected to maintain its lead through to 2029, driven by an increasingly larger number of offerings. By leveraging its widespread access to advanced networks such as 4G and 5G, the SA leading telecom provider is making a statement in the market.
The acquisition of Telkom will provide MTN with a strong network and possibly make it the leading mobile network operator in South Africa. The deal, if it happens, will mark a pivotal milestone in its expansion in Africa.
The group will also look to enhance the strength of its connectivity and tap into an industry projected to witness high returns. The SA telecom market is expected to reach a size estimated at $10.43 billion by the end of 2025 and $12.28 billion by 2030. It is also expected to grow at a compound annual growth rate (CAGR) of 3.33% during the forecast period of 2025 – 2030.
