MTN is in advanced talks to buy Orascom's assets in African countries including Zimbabwe, Algeria, Burundi, Central Africa Republic, Tunisia, and Namibia and has already approached banks to secure US$5 billion in financing for the deal, which in total may be with more than $10 billion. Orascom's Middle East and Asia operations including Bangladeshi, North Korea and Pakistan are not part of the deal. The Egyptian operator currently has a market capitalization of $7.5 billion. The deal could heighten competition between MTN and India's Bharti Airtel, the two big mobile operators looking to increase their presence in Africa's rapidly growing mobile market. Both companies are promising more acquisitions of financially struggling African mobile operators and expansion of their services in remote rural areas. While MTN is Africa's largest mobile operator by subscribers, it relies on Nigeria and South Africa, Africa's two largest mobile markets, for most of its revenue.

"In line with the vision to be the leading provider of telecommunications services in the emerging markets, the MTN Group continues value accretive expansion opportunities in emerging markets. MTN cannot comment on specific corporate activity," said Nozipho January-Bardill, group executive for corporate affairs at MTN. MTN has confirmed it is in talks with Orascom but has declined to comment on specifics.
Orascom's sale of its Algerian Unit, which operates under the name Djezzy, would allow the company to exit the country after a tax dispute and damage to its infrastructure in November last year following riots after the World Cup soccer match between Egypt and Algeria. Djezzy is Orascom's most troubled unit, the subject of disputed tax bill and tension between the Algerian government and Orascom management. Djezzy, however, is Algeria's largest mobile phone service provider and Orascom's biggest source of revenue.
Orascom officials said most of the terms of the deal with MTN are at an advanced stage that have already been agreed by the two parties although the structure of a possible deal is still being discussed.