'SA did not like Bharti-MTN deal'

Updated on: 06 October,2009 07:29 AM IST |
Khalid A-H Ansari | smdmail@mid-day.com

South African currency, the rand, has lost ground following the failure of the proposed Bharti Airtel merger with MTN.

South African currency, the rand, has lost ground following the failure of the proposed Bharti Airtel merger with MTN.

Bharti and MTN abandoned the talks on their proposed $24 billion merger for the second time in two years, saying the deal failed to win South African government approval.

According to South African Reserve Bank governor Tito Mboweni, the authorities "didn't like" the deal.

Bharti and MTN had almost finalised all details of the complex, multimillion-dollar merger after months of negotiation, following last week's extended deadline.

But the negotiations fell through after the Indian and South African governments had their say.

Bharti had been quoted last week as saying that the deal was over, but MTN delayed a statement on the collapse causing confusion to reign in South Africa last week.

Governmentsu00a0 differ

Bharti blamed the South African government for blocking the deal.

It is understood the South African government wanted a dual-listing structure, which the Indian authorities could not approve.

Minister of finance Pravin Gordhan said in a statement that MTN chief executive Phuthuma Nhleko and chairman Cyril Ramaphosa had said the "two companies have mutually decided to terminate further discussions".