The deal involving proposed merger of Bharti and MTN seems to be a never ending story. The complex structure of the deal makes the task that much more difficult.

The latest barrier to hit the deal is that the South African government is keen for dual listing of both the companies in both the countries. In India dual listing is not permitted since the capital account convertibility is not allowed in the country. In affect dual listing permits shares to be bought in one country and sold in another. In such transactions there is always a fear that the government may lose control over the transactions. India only allows the listing of depository receipts of shares of companies outside the country.

‘‘The South African minister met me at the G-20 finance ministers meeting and there I suggested to him that this arrangement needs to be looked into Indian context. Whether the dual listing of a company can be done under the existing laws of India is being examined,” confirmed India’s Finance Minister, Pranab Mukherjee.

The new development means that even if the two parties arrive on a final consensus before the September 30 deadline, it will take some time for the deal to actually come into reality.