India’s Bharti and South Africa’s MTN today confirmed they are to extend their merger talks by another month, with an exclusivity period now ending 31 August. “No decisions or agreement to acquire any shares or implement the transactions outlined above have been made by the Boards of either Bharti or MTN and the discussions may or may not lead to any transaction,” noted a statement. “The structure and terms of the potential transaction may be adjusted to reflect further discussions between the parties.”

The delay is thought to be due to complications arising from the potential role SingTel will play in the merged entity. The Singapore firm currently owns 30 percent of Bharti and the companies are believed to be discussing how the stake could be maintained if a merger were to go through. According to the original merger plans – announced by the two operators in May – Bharti will acquire a 49 percent shareholding in MTN, while MTN and its shareholders would acquire an approximate 36 percent stake in Bharti, of which 25 percent would be held by MTN with the remainder held directly by its shareholders. The merger would create a telecoms group with combined revenues of over US$20 billion and a customer base of over 200 million, which would combine Bharti’s market-leading Indian business with MTN’s various business units across Africa and the Middle East. It is the second time that the two parties have discussed a merger; last year’s talks reportedly broke down over Bharti’s refusal to become an MTN subsidiary.