The proposed $23-billion mega deal between Bharti Airtel and South Africa's MTN would be the biggest ever M&A transaction involving an Indian company.
The potential value of the Bharti Airtel-MTN deal, which would involve a complex structure in which both the entities would pay cash and stock for stakes in each other, would amount to $23 billion.
This would be the biggest M&A deal involving an Indian entity, prior to this the largest deal by an Indian company so far has been Tata Steel's takeover of European steel major Corus for $12.2 billion. This is followed by British telecom giant Vodafone's purchase of controlling stake in Indian mobile service provider Hutch Essar for about $10 billion.
As per the exploring agreement, MTN and its shareholders would acquire around 36 per cent economic interest in Bharti Airtel. While, the Sunil Mittal-promoted Bharti Airtel would acquire 49 per cent stake in South African telecom giant MTN.
According to global consultancy major Grant Thornton Partner and Head, Mergers and Acquisitions Pankaj Karna, "If you have the capital and an organisational mindset to manage them, the downturn represents a great time for M&A as long as you play it close to your core business and leverage on your market knowledge and sector strengths."
