Bharti want to acquire South Africa's MTN.

In what may turn out to be the largest ever acquisition by an Indian company, the country’s biggest private telecom player Bharti Airtel said it was in talks to acquire South Africa’s MTN. This is the first time that both companies have officially confirmed that they have entered into discussions for a possible stake sale. The board of MTN, South Africa’s largest telcom, is learnt to have met on Monday to discuss the potential buyout from Bharti.

MTN has operations in 21 countries in Africa and the Middle East like Nigeria, Republic of Congo, Rwanda, South Africa, Uganda, Zambia, Iran, Afghanistan, Ghana, Sudan, Syria, Yemen and other countries. The Indian model of low tariffs and high volumes can easily be replicated in the nations where demand for cellular services is high and volumes are related to tariffs. MTN has more than 68 million customers, which is just about a little larger than the customer base of Bharti Airtel. MTN has a market cap of more than more than $35 billion, while Bharti is valued about $45 billion. Discussions between Bharti Airtel and MTN Group of South Africa are still at an early stage, and exploratory in nature that may or may not lead to any transaction. Accordingly, investors are advised to exercise caution when dealing in the company’s securities until a further announcement is made.