MTN Group, a major player in the telecommunications sector, is reportedly revisiting its strategy to acquire Telkom, a South African telecom rival. This move comes after MTN withdrew from acquisition talks in 2022.
Bloomberg reports that this initiative aligns with MTN’s broader ambition to expand its presence and solidify its leadership across Africa’s telecom landscape. Presently, MTN serves approximately 298 million subscribers in 15 African countries. Adding Telkom’s 23 million users would significantly boost MTN’s market share.
Sources indicate that Telkom has engaged consultants and advisors from both companies to explore the possibility of reigniting acquisition discussions. While fresh negotiations are anticipated by late 2025, the outcome remains uncertain.
Initial talks three years ago were abandoned amid concerns over regulatory approval. Authorities feared the merger could create an overwhelmingly dominant mobile operator, potentially stifling competition from other market participants.
The South African Competition Commission and Competition Tribunal are tasked with ensuring mergers promote fair competition. Previously, there was apprehension that MTN’s acquisition of Telkom could overshadow competitors like Vodacom and Cell C.
Since the collapse of the deal in 2022, Telkom’s stock price has surged by over 40%, valuing the company at roughly $1.4 billion. MTN hopes that renewed talks will bring fresh perspectives and persuade regulators that the acquisition would not harm market competition.
MTN’s revived interest is partly influenced by the recent approval of Vodacom Group Ltd.’s acquisition of a stake in Remgro Ltd.’s fibre business. After prolonged negotiations, South African competition authorities sanctioned the deal, boosting MTN’s confidence in the feasibility of a Telkom merger.
To strengthen its position, MTN has appointed Tsholofelo Molefe, its Chief Financial Officer and a former Telkom executive, to lead its mergers and acquisitions division.
Also Read: MTN surpasses Vodacom in voice network quality across South Africa in 2025 report.
Implications of the Proposed Acquisition for MTN in South Africa
As a dominant telecom operator in Africa, MTN aims to broaden its service portfolio and subscriber base. Acquiring Telkom would eliminate a key competitor and sharpen its focus on rivals such as Vodacom and Cell C.
Vodacom, MTN’s main competitor and a subsidiary of the UK-based Vodafone Group PLC, currently leads the South African market with over 52 million subscribers. MTN follows with 39.9 million users as of March 2025, while Telkom and Cell C hold 23 million and 7.7 million subscribers respectively.
Industry data forecasts Vodacom will maintain its market leadership through 2029, driven by an expanding range of services. Leveraging extensive 4G and 5G network coverage, Vodacom continues to assert its dominance in South Africa’s telecom sector.
Should the acquisition proceed, MTN would gain a robust network infrastructure, potentially positioning itself as South Africa’s top mobile network operator. This milestone would mark a significant step in MTN’s African expansion strategy.
Furthermore, the acquisition would enhance MTN’s connectivity capabilities and allow it to capitalize on a telecom market projected to grow substantially. The South African telecom sector is expected to reach $10.43 billion by 2025 and expand to $12.28 billion by 2030, with a compound annual growth rate (CAGR) of 3.33% during this period.
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