Bharti-MTN largest telecom deal this year

The Sunil Mittal-controlled Bharti Airtel and South Africa-based MTN group's proposed USD 23-billion mega deal is the largest global telecommunications transaction and the fourth biggest global M&A deal this year.

The Sunil Mittal-controlled Bharti Airtel and South Africa-based MTN group’s proposed USD 23-billion mega deal is the largest global telecommunications transaction and the fourth biggest global M&A deal this year.

The Bharti-MTN deal with a potential value of USD 23 billion is nearly half of the total telecommunication merger and acquisition transactions announced till mid of this month.

As per global deal tracking firm Dealogic,global telecom volumes in 2009 stood at USD 49.2 billion through 410 deals.

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“Not only for sheer size,this deal would be a first of its kind,because it is a stock and cash deal. It will bring to centre stage the use of stock as a mechanism to settle purchase consideration,” global consultancy firm PricewaterhouseCoopers Executive Director Sanjeev Krishnan said.

Besides,the Bharti-MTN deal would be the fourth-largest deal so far this year after the Wyeth-Pfizer transaction amounting to USD 61.8 billion,Schering-Plough and Merck deal worth USD 45.9 billion and the US government hiking its stake in Citi to 36 per cent for USD 25 billion.

Experts believe the Bharti-MTN deal certainly give a fillip to the M&A market in India,which has been somewhat dormant for a bit,but the lull in the merger and acquisition space is far from over.

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