Airtel to merge Warid Telecom with its own unit in Uganda

Bharti Airtel has announced a deal that will see its Ugandan subsidiary merging with the local Warid Telecom mobile network.

Airtel said that the transaction will further consolidate its position as the second largest mobile operator in Uganda with a combined customer base of over 7.4 million and market share of over 39 per cent.

Airtel currently has 4.6 million customers in Uganda, while Warid has 2.8 million customers.

Speaking on the agreement, Manoj Kohli, MD and CEO (International) of Bharti Airtel said the agreement happens to be the first in-market acquisition in Bharti Airtel’s history.

The agreement is subject to regulatory and statutory approvals.

In mid-2011, Essar Group had attempted to acquire Warid Telecom’s networks in Uganda and Congo but has been forced to cancel the purchase after it was unable to secure regulatory approval for the transaction.

Essar Group agreed to purchase the networks from Warid Telecom in November 2009 for US$318 million, but the two companies cancelled the deal as, “certain condition precedents pertaining to government clearance were not met”.