The Ghana National Communications Authority, NCA, has approved the merger the proposed merger between Millicom and Bharti Airtel of their units in the country.
Millicom owns Tigo while Bharti operates as Airtel in the country. The proposed merger was announced back in March but had to go through regulatory approvals which were received during the weekend in Ghana.
According to a notice sent to Tigo and Airtel, the companies said: “Kindly note that on Thursday, Sept. 14, we received a conditional approval from the National Communications Authority on the planned Tigo Ghana and Airtel Ghana merger”.
People familiar with the matter said both companies would have an equal share in the new entity as well as an equal management structure.
The merger will see the new mobile carrier become the second largest operator with total revenue of about USD300 million per annum. South Africa’s MTN is the country’s largest carrier but will see more competitive pressure as a result of the new alliance.
No further information has been provided on the approval details, however, the companies said it will share more information as the event unfolds.
Other players in the market are Britain’s Vodafone, Globacom of Nigeria and Sudan’s Sudatel Expresso. Analysts in the market said they expect to see further mergers as the market gets to a saturation state where new subscribers are hard to come by.