French telco Orange is expanding its African holdings with the acquisition of Liberia’s largest operator, Cellcom Telecommunications. The move is part of an international growth strategy Orange is implementing to gain momentum in emerging markets, with Africa a focal point for the European carrier. The acquisition is set to take place through Orange Côte d’Ivoire, a subsidiary of Orange.
The West African nation, which is home to more than 4.3 million people, currently has one of the lowest mobile penetration rates on the continent at 66%. Cellcom ranks just ahead of rival LonestarCell MTN with 1.3 million subscribers and a 45% market share.
According to a press release, Cellcom’s employees will remain involved in the company’s business to ensure “a smooth integration, support performance and continue long-standing relations with the Government of Liberia.” Recently, Liberia has experienced an economic downturn due to an Ebola outbreak and declining revenues from it iron and rubber industries.
The emergence of Orange in the country could provide the economic boost the country needs as the carrier pools its global resources to offer enhanced performance, service and technology. Liberia would reportedly also become part of a 28-country mobile network designed to enhance roaming services around the world.
The Liberia Telecommunications Authority takes Orange’s investment in the country as a “vote of confidence” in Liberia’s telecommunications sector, according to an unnamed source within the organization.
Orange also has holdings in other African countries, including Cameroon, the Central African Republic, the Democratic Republic of the Congo and Niger. The company has plans to grow by 20% by 2018 in African and Middle Eastern markets.
The terms of the transaction have not been disclosed. The deal is subject to customary closing conditions.
