TDM and mCel merger moving ahead

16 June 2017

Mergers, Acquisitions and Financial Results

The government of Mozambique is pushing ahead with its plan to merge state-backed fixed line operator Telecomunicacoes de Mocambique (TDM) and its mobile subsidiary mCel.

A director’s committee has been appointed to oversee the process, which is aimed at making the firms more efficient and allowing for an increasingly converged portfolio of fixed and mobile services. Both companies are thought to be operating at a loss, and there has been some speculation that the merger of TDM and mCel could be the precursor to further privatisation by the government in the hope of bringing in an outside investor to help revive the fortunes of the ailing telcos.

Local news portal @Verdade reports that the two telcos have accumulated debts of more than MZN14 billion (USD230 million).