Zambia grants Airtel authorization for Zain takeover

The Zambia Competition Commission (ZCC) has granted conditional authorization for Bharti Airtel of India to take over 78 percent of Zain Zambia.

The ZCC special board of commissioners last week decided to authorize the proposed acquisition of Zain Africa by Bharti Airtel subject to undertakings given by Zain Zambia in relation to the ZCC's concerns over interconnection rates.

The ZCC also want a full disclosure from Bharti Airtel of roaming rates to Zain Zambia customers.

Bharti Airtel is yet to be given a similar go ahead in Congo Brazzaville.

Bharti Airtel, India's largest mobile carrier, said in February that it was in exclusive discussions to buy the African operations of Zain, in a deal with an enterprise value of US$10.7 billion. The bid for Zain's operations came after Bharti Airtel failed twice to arrive at an agreement with MTN Group in South Africa. That plan was rejected by the South African government, which wanted to maintain MTN's separate identity.

With its acquisition of former Zain Africa holdings, Bharti Airtel becomes the second largest operator in Africa after MTN of South Africa.