South African incumbent Telkom has abandoned discussions relating to a potential acquisition of local mobile operator Cell C.
Despite a reported long-standing interest in acquiring Cell C, with talks commencing in September, Telkom has scrapped the talks as the two parties could not agree on a price.
Cell C is the third largest mobile operator in South Africa, and acquiring it would have provided Telkom with 20 million subscribers. The incumbent currently has a fairly small mobile unit, with only 2.1 million connections.
Telkom has advised its shareholders that it has “mutually agreed to terminate…discussions” with Cell C’s parent company Oger Telecom.
A response from Bloomberg reports spokeswoman Jacqui O’Sullivan observes that: “It has became clear that there is a difference between the parties on the assessment of value of the proposed transaction”.