EACC puts new hurdle on Telkom, Airtel merger

15 November 2019

Mergers, Acquisitions and Financial Results

The merger between Airtel and Telkom Kenya has hit a fresh hurdle after the Ethics and Anti-Corruption Commission (EACC) insisted Thursday that it is yet to clear the deal. Earlier reports had stated that the anti-graft agency had approved the transaction.

The EACC told Parliament Thursday that that investigations related to previous deals at Telkom Kenya were still ongoing, adding that the freeze on the merger deal remains in place.

The new development looks set to delay regulatory approvals for the merger that is aimed at creating a stronger challenger to Safaricom, which controls 65 percent of the mobile telephony market share.

The EACC position is at odds with statements to the Senate from Telkom Kenya CEO Mugo Kibati indicating that the anti-graft agency had cleared the deal because both firms are private companies.

Source: Business Daily