You are here: Home » Reuters » News
Business Standard

Airtel's Kenyan unit abandons plan to merge with Telkom: sources

Reuters  |  NAIROBI 

(Reuters) - The Kenyan unit of has abandoned plans to merge with to take on the market leading operator Safaricom, industry and government sources said on Monday.

Sources said in April that Airtel and were planning to merge to create a stronger challenger to Safaricom, which has 72 percent of subscribers, or around 30 million subscriptions.

"Airtel developed cold feet," said an industry source who declined to be named.

Airtel, owned by India's Bharti Airtel, did not respond to a request for comment.

Joe Mucheru, the for information and communication, said he was aware of the walkout by Airtel.

The proposed merger broke down over a number of issues, particularly Airtel resisting making a commitment to significant future investments in the company, the industry source said.

The sector regulator, Communications Authority of Kenya, said neither nor Airtel had formally communicated with it about the deal.

Telkom Kenya, which is controlled by Africa-focused, London-based Helios Investment declined to comment.

Telkom and Airtel have a combined 23 percent of Kenya's 41 million mobile subscribers.

Data from the regulator showed Airtel had increased its users by more than a million in the last quarter of last year, benefiting from a call by the opposition for its supporters to boycott

(Reporting by Duncan Miriri; Editing by and Adrian Croft)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, June 11 2018. 18:33 IST