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French operator group completes acquisition of Millicom’s DRC operations, gaining 5.32 million customers.
Orange this week announced that it has closed the acquisition of Millicom’s Tigo business in the Democratic Republic of Congo, more than doubling its mobile customer base in the country in the process.
The operators agreed a US$160 million all-cash deal for the business in February.
"We are extremely happy to announce the completion of the acquisition of Tigo by Orange DRC in a market marked by very strong growth potential," said Bruno Mettling, Orange’s deputy CEO with responsibility for its Africa and the Middle East operations, on Thursday.
Indeed, according to Orange, the DRC has a population in excess of 80 million and mobile penetration of around 50%.
At the end of 2015, Orange had 5.27 million customers in the country, while Tigo had 5.32 million. Bringing the two businesses together will generate scale and create a stronger player in the market.
"Through this strategic investment, Orange confirms its ambition to reinforce its presence in the Democratic Republic of the Congo and accelerate the conditions in which it can develop its services through this consolidation," Mettling said.
The deal forms part of Orange’s growth plan in the Middle East and Africa. Mettling’s predecessor Marc Rennard – now in charge of customer experience and financial services – recently described the region as the growth engine of the France-based telco group.
Last year, Orange set up a new holding company, Orange Middle East and Africa (OMEA), through which it will drive its ambitions in the region.
Millicom, meanwhile, previously said the DRC sale is in line with its strategy of focusing on its strongest markets, allowing it to invest in its other African operations and those in Latin America.
On Thursday it issued a statement confirming simply that the DRC sale had closed.
