Mergers can be lifeboat for Egypt’s telecom sector from economic pressures: Experts

Mergers can be lifeboat for Egypt’s telecom sector from economic pressures: Experts

Merger deals could be a lifeboat for telecom companies in the face of economic pressures. Experts in the telecom sector believe that the Egyptian market could be involved in mergers in the telecom sector, considering the potential deal to sell Telecom Egypt’s stake in Vodafone Egypt as an entry point for this type of deal. Experts attributed companies resorting to mergers to the global economic challenges and the imposed economic slowdown. Companies need to form larger entities that are more tolerant of these pressures. Hisham Abdel Ghaffar, managing director of the MENA Gross Investment Fund, which specializes in investing in startups, said that global economic pressures will push companies towards mergers, to reduce the pressures resulting from the current economic conditions. Britain’s Vodafone and Hutchison announced their £15bn ($19bn) merger last week. They commented on that saying that creating a market leader would drive competition and investment in the country, according to Reuters. Regarding the possible merger of Vodafone Britain and Hutchison, Abdel Ghaffar believes that the British economy in particular is under economic pressure as a result of its withdrawal from the European Union Treaty, as well as the negative effects of the inflationary recession that has hit the