CAIRO: After weeks of discussion and controversy, South Africa's MTN Group Ltd. will not buy Egypt's Orascom Telecom Holding's Algerian unit, Algeria's Finance Minister Karim Djoudi said. “Orascom Telecom has not approached the Algerian government regarding selling its mobile unit Djezzy, which means there is no deal with MTN or any other foreign company,” he said in parliament today. Orascom then said that it would enter into negotiations with the Algerian government over the sale of the unit. The official Algerian government ruling comes after the government last week had said there would be no deal between the two African telecom giants. The finance minister ended any speculation. During South African President Jacob Zuma's visit to the country last week, Foreign Minister Mourad Medelci said that “concerning Orascom, the page is turned with South Africa.” On May 3, the Algerian government publicly announced it was ready to purchase Djezzy, using its preemptive rights after it had learned Orascom was in negotiations with MTN over the possible selling of Djezzy and Orascom's assets in Algeria. Medelci said “I want to reassure you that my colleague and I discussed this matter in a very positive and serene climate.” The ordeal has increased already tense relations between Algeria and Egypt, even though the MTN deal was never solid and nothing had been confirmed. Last fall, Egypt and Algeria broke off diplomatic relations for a short period after clashes broke out in both countries between their citizens over a World Cup qualifying match that saw Algeria advance to next month's finals. Algeria's minister for communications technology, Hamid Bessalah, complained in early May about the “audacity” of holding talks with MTN, arguing that Orascom was required under Algerian law to “notify the country's regulators.” Medelci said that turning the page on the MTN-Djezzy scenario “does not signify that South African companies, and in particular MTN, won't have the possibility of working in Algeria.” South Africa and Algeria did sign 6 accords during the state visit, including one over peaceful use of nuclear energy. BM
