It’s been a long time coming but we finally have some news on the Telkom – Airtel Merger. Telkom Kenya today makes a rather shocking announcement. The proposed deal has been called off.
Telkom – Airtel Merger Called Off
In December the situation was different. The Airtel-Telkom deal, which had been suspended pending corruption investigations received regulatory approval from the competition authority of Kenya.
There were certain conditions that had to be met but everything looked fine and dandy. However, that is not the case today.
In a statement by Telkom’s CEO Mugo Kibati, the company states that they are experiencing challenges in getting all the approvals required to ‘complete the transaction’.
Here’s the official word from the CEO;
After carefully reviewing the available options, Telkom has opted to adopt an alternative strategic direction. We will no longer be pursuing the proposed joint venture transaction. This decision is a mutual agreement between us and Airtel Networks Kenya Limited.
Telkom adds that the new, they are pursuing a ‘bold and exciting direction’ which offers all Telkom employees the opportunity for greater career progression.
The aim of the Telco is to better position its infrastructure asset base and services. They want to support this digitisation and, in the long term, bridge the consumer digital divide.
They also take a shot at commending their Project Loon as they seek to find better avenues for technological advancement.