UPDATE 1-MTN to buy Verizon South African unit
ju4 wa4i dia4n zo1ng he2 ba4o da4o :\n  (adds CEO comments, analyst quotes, background)\nJOHANNESBURG, June 25 (Reuters) - South African mobile phone\noperator MTN Group <MTNJ.J> said on Wednesday it has agreed to\nbuy the South African unit of US-based Verizon Communications\n<VZ.N> for an undisclosed amount.\nVerizon Business South Africa provides telecommunications to\ncorporate customers in South Africa, Namibia, Botswana, Zambia\nand Kenya.\n"The transaction is in line with MTN's stated strategy to\nprovide integrated communications solutions in all of its\nmarkets," MTN said in a statement.\nIt added that the transaction would help its existing\nInternet service provider, MTN Network Solutions, to offer a\nbroad range of communication offerings, beyond its mobile services.\n"The acquisition will also provide MTN with access to a\nsignificant pool of skilled professionals," Phuthuma Nhleko, MTN\nGroup's chief executive, said.\nThe finalisation of the transaction is subject to regulatory\nand competition commission approval.\n"By acquiring Verizon they are buying a fairly good and\nextensive network in the major urban areas in South Africa,"\nDobek Pater, a telecoms analyst at Africa Analysis, said.\nHe added that Verizon in South Africa has been struggling in\na competitive market and has lost some accounts to Internet\nSolutions, a unit of Dimension Data <DDTJ.J>, and other\ncompetitors.\n"Its (Verizon) revenue took a bit of a knock. As such it is\nnot going to be contributing a significant amount to the bottom\nline of MTN from day one," said Pater.\n"For Reliance (this transaction) is not going to have a\nimmaterial impact, I think as far as monetary value is concerned\nat this time. It just enforced the view that MTN is looking for\nadditional revenue streams by extending into new markets," Pater\nsaid.\nMTN is currently in exclusive talks with India's Reliance\nCommunications <RCLM.BO>, which could create a $66 billion\nemerging markets telecoms group.\n(Reporting by Gugulakhe Lourie; Editing by Paul Bolding)\n((gugu.lourie@thomsonreuters.com; 27 11 775 3162; Reuters\nMessaging: gugu.lourie.reuters.com@reuters.net))\n(For full Reuters Africa coverage and to have your say on the\ntop issues, visit: http://africa.reuters.com) Keywords: MTN/