Blue Label has agreed to buy smartphone distributor 3G Mobile for R1.9bn in a deal that will strengthen its expansion into the cellphone market beyond the distribution of pre-paid products such as airtime. The transaction would also give it access to eight countries in Africa including SA, and entry into the handset financing market. The deal will be settled through cash and shares. 3G Mobile distributes and finances mobile devices and handsets to major retailers and cellular network providers. It has distribution rights for all major mobile devices, from handset manufacturers including Apple, Samsung, Huawei, HiSense, ZTE and Nokia. The adoption of smartphones has soared in recent years and the trend is set to continue. Through its wholly owned subsidiary Comm Equipment, 3G Mobile provides the financing of the mobile handset component of contracts to cellular network providers such as Cell C. 3G Mobile will be used as Blue Label’s expansion platform into the financing and supply of...
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