**South African and Indian officials are holding talks in Mumbai to discuss the planned merger between mobile phone firms MTN and India’s Bharti Airtel.**A merger would create the world’s third-largest mobile phone group.
Under the proposal MTN would take a 36% stake in Bharti, while Barti would get a 49% stake in the South African firm.
The two sides will discuss regulatory matters regarding the deal. The South African Treasury says a tie-up offers “excellent possibilities for synergy”.
The two companies had been in merger talks last year, but these broke down when they failed to agree on who would lead the merged group.
One issue that will be discussed is whether the merged company would be listed on both the South African and Indian stock exchanges. The South African government is keen for this to be the case, according to reports.
South Africa allows dual listing, while India does not.
“We have received an application from MTN for an exemption on a range of exchange controls regulations, and due process is being followed,” the South African Treasury said in a statement.
“There are excellent possibilities for synergy between an Indian company and a South African company, which also offers knowledge sharing, new technological capacity and leveraging, which will enable both countries to benefit.”