Telkom is considering making an offer to buy a majority stake in Cell C that would lead to a combination of SA’s third and fourth-largest mobile phone companies, according to people familiar with the matter. The former landline monopoly is seeking management control of the Johannesburg-based carrier, said the people who asked not to be named as the plans are private. Telkom hasn’t made a final decision and the deal could yet fall through, they said. Telkom and Cell C declined to comment. A tie-up between Cell C and Telkom’s mobile phone division would create a business with about 21.5-million subscribers. That would pose a slightly greater threat to the dominance of SA’s top two operators, Vodacom Group and MTN Group, which have more than 70-million customers between them. Telkom, which has been investing heavily in mobile and data services to offset the decline in landline use, is almost 41% owned by the government. Telkom initially attempted to take over Cell C in 2017, only to be...

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