China Mobile eyes South Africa for expansion

Like the growing user base in the domestic market isn’t enough, China Mobile (NYSE: CHL) is eyeing South African market to expand internationally. Earlier reports suggested the world’s largest mobile operator by the total number of subscribers wanted to bid for MTN, which will most likely end up in India’s Bharti “hands.” However, China Mobile denied that it is interested to buy MTN.

“China Mobile has not joined the MTN bidding, but we are interested in the South African market and we are looking at various opportunities for entering that market,” the carrier’s chief executive Wang Jianzhou commented following the company’s annual general meeting.

So far, China Mobile had a mixed track record of acquisitions. The carrier came close to buying emerging-markets operator Millicom International Cellular in 2006 before pulling the plug on the deal. In May of last year, it made its first and only overseas acquisition, buying Pakistan’s Paktel from Millicom for $460 million.

In February, however, China Mobile opened an EMEA headquarters in London, stating that emerging markets in Africa and the Middle East are priorities for the operator in 2008.

[Via: Reuters]