Bharti Airtel and Millicom International Cellular announced the closure of their deal to merge their telecom operations to become the second largest operator with nearly 10 million mobile subscribers in Ghana.

Airtel and Millicom will have 50:50 stake and governance rights in the combined entity, which will have revenues of approx. $300 million. Both Airtel and Millicom will have Board representations and management positions in the merged entity.

Roshi Motman, the current CEO of Tigo Ghana, will be the new CEO of the joint entity. The merged entity will be deconsolidated and treated as a strategic asset in the form of a joint venture. The new company will operate both brands – Airtel and Tigo in Ghana, one of the main telecom markets in Africa.

The Ghana National Communications Authority (NCA) gave approval for the merger proposal early this month.

The merged entity will become the second largest mobile operator with nearly 10 million mobile subscribers in Ghana. The combined networks of the two companies will cover more than 80 percent of Ghana’s population, in particular in villages and rural areas. It will also have one of the largest sales and distribution network to enhance customer convenience.

The synergies from this merger will help the combined entity achieve profitability and cash-flow levels faster. The merged entity with its optic fibre footprint and increased number of data centres will bring significant benefits to enterprise customers.