MTN and Belgacom ICS (BICS) have combined their international carrier services, in a deal that sees MTN take up 20% of the Belgian company's assets.
Yesterday, MTN announced the transaction was closed after “having obtained the requisite approvals of all relevant government, regulatory and competition authorities”.
The low-key deal will see MTN combine its international wholesale subsidiary, MTN ICS, with the BICS business. BICS will operate as the official international gateway for MTN's global carrier operations.
The companies have had a commercial relationship since 2005. MTN initially announced it would take a stake in the international business in June.
The deal will shift the BICS shareholding, with Belgacom owning 57.6%, Swisscom 22.4% and MTN taking up 20%, with the right to appoint two directors to the board.
MTN hopes the combination of the international carrier services of BICS and MTN ICS will improve efficiencies and product offerings. It will also prove to be a boost for the company's financials, specifically since it is looking for new growth opportunities.
The deal is a win for both businesses, since Belgacom will now have extended access to the wholesale market in Africa, an area that MTN has dominated over the last few years.
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