MTN Group, Africa’s largest telecoms operator, is preparing to revive its plans to acquire Telkom South Africa (Telkom SA) by the end of 2025. The move comes three years after MTN abandoned earlier negotiations in 2022 due to antitrust concerns.

According to Bloomberg, the renewed effort aligns with MTN’s strategy to broaden its African footprint and strengthen its position in the highly competitive telecoms sector.

MTN’s Growth Ambitions

MTN currently has 298 million subscribers across 15 African markets. By acquiring Telkom’s 23 million subscribers, MTN would significantly boost its base and move closer to overtaking Vodacom, its biggest rival in South Africa.

The potential acquisition could reshape South Africa’s telecom market, where subscriber distribution stands at:

• Vodacom: 52 million
• MTN: 39.9 million (as of March 2025)
• Telkom SA: 23 million
• Cell C: 7.7 million

With this deal, MTN could position itself as a leading mobile operator in South Africa, intensifying competition with Vodacom, which is backed by Vodafone Group PLC.

Why the 2022 Deal Collapsed

Negotiations between MTN and Telkom in 2022 collapsed after concerns from the SA Competition Commission and Competition Tribunal suggested the merger could create a dominant operator. Rivals such as Vodacom and Cell C argued that the merger would reduce competition.

Since then, Telkom’s share price has risen over 40%, pushing its valuation to about $1.4 billion.

Why MTN is Reviving the Deal

Several factors have motivated MTN’s renewed interest:

• Vodacom’s green light: Vodacom recently secured approval to take a stake in Remgro Ltd.’s fibre business, signaling a shift in regulators’ willingness to allow large telecom mergers.
• Leadership strategy: MTN has appointed its Chief Financial Officer, Tsholofelo Molefe, a former Telkom executive, to head its mergers and acquisitions unit.
• Market opportunity: The South African telecom market, valued at $10.43 billion in 2025, is projected to reach $12.28 billion by 2030, growing at a CAGR of 3.33%.

Competition and Market Outlook

Vodacom remains South Africa’s market leader, supported by strong 4G and 5G infrastructure. Global data forecasts that Vodacom will maintain its lead through 2029, but an MTN-Telkom merger could alter market dynamics.

If successful, the deal would:

• Enhance MTN’s network strength
• Expand its subscriber base
• Position MTN as a stronger competitor to Vodacom
• Cement its dominance in the African telecoms industry

Final Thoughts

MTN’s potential acquisition of Telkom SA marks a critical step in its expansion strategy. While the deal still faces regulatory hurdles, it could redefine South Africa’s telecom sector and intensify competition between MTN and Vodacom.

With the market expected to see steady growth, MTN is positioning itself to capitalize on the $12.28 billion opportunity by 2030.