Bharti Airtel and Millicom International Cellular, which works under the brand Tigo, on Friday said that they have entered into an agreement for Tigo Ghana and Airtel Ghana.
The agreement will see the two telecoms combine their operations in Ghana where Airtel and Millicom would have equal ownership and governance rights in the combined entity.
According to ET on January 23, Bharti Airtel, which is embroiled in a brutal tariff war in India, was looking to merge with rival Millicom to improve operations in Africa where it is yet to make a profit since entering the continent in 2010.
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The big move will leave the two big players serving nearly 10 million customers, of which 5.6 million are data customers replacing Vodafone to become the second largest operator in Ghana.
“The coming together will further strengthen our position in the market and offer huge benefits arising out of synergies in operations, resulting in better experience for the customers,” Raghunath Mandava, MD and CEO, Airtel Africa, said.
Airtel Ghana contributes 6-7% to Bharti Airtel’s Africa revenue, which totaled close to $900 million for the July-September quarter.
The transaction is subject to obtaining approvals from the relevant authorities in Ghana and the satisfaction of customary closing conditions, an official statement said.
Allan Bangirana is a freelance writer for Newslibre & CEO of Innovware startup project. He is passionate about tech, games and entertainment. He also enjoys writing about anime and many other topics.