Cell C hints at possible mergers and acquisitions
Market concentration concerns will limit options
Cell C says consolidation among SA’s telecommunications operators is "a real possibility", hinting that the mobile network operator may play a part in possible mergers or acquisitions. In an investor roadshow presentation published by 45% shareholder Blue Label Telecoms on Thursday, Cell C also said it was gaining market share. Mergence Investment Managers portfolio manager Peter Takaendesa said it was "very unlikely" that industry giants Vodacom and MTN would get regulatory approval to acquire Cell C, given market concentration concerns. "That means the only possible consolidation within the mobile market is between Cell C and Telkom," Takaendesa said. "I do not think Telkom is willing to let go of its mobile business as they want to sell a converged communication offering of fixed, mobile and IT services." As such, Cell C would be the only realistic potential target, he said. Other firms could look to acquire the company to enter SA’s mobile market. "The challenge is always going ...
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