Orange interested in Vodacom?

·1 Nov 2013

A report suggests that French-based mobile operator Orange SA, has expressed interest in buying some of Vodafone’s African operations – which would include Vodacom, its South African subsidiary.

This is a according to Bloomberg, which cites “a person familiar with the matter”. The news organisation said that a representative for Orange declined to comment.

Vodacom is 65% owned by the Vodafone group.

The french firm already has a presence in South Africa, having launched Orange Horizons as a subsidiary dedicated to seeking out new business opportunities, in January.

The group already sells products in SA through its website, and has a business unit serving high profile companies in the mining, and petroleum industry.

Previously, Orange has spoken about its intention to become a Mobile Virtual Network Operator (MVNO) in South Africa, but has been critical of a lack of legislation covering that sector of the industry.

In a recent interview with BusinessTech, Orange Horizons CEO, Sébastien Crozier said that, given the frequency, “we could enter the market as a real player,” but only through an agreement with an existing player to be on its network.

China Mobile in SA?

According to Bloomberg, American telecommunications firm AT&T is readying for a potential takeover of Vodacom’s parent company, Vodafone in 2014, again citing “people familiar with the situation”.

The international news service said that AT&T would be less interested in Vodafone’s African assets, which include operations in Egypt, Kenya, and Ghana.

Bloomberg said that one potential strategy could involve spinning off most of the UK based operator’s emerging-market assets into a new entity – with the likes of America Movil, the Mexican telecommunication company owned by Carlos Slim, or China Mobile as potential suitors, according to the source.