(Ecofin Agency) - There are strong indications that Bharti Airtel will emerged as a potential bidder for Etisalat Nigeria (now officially 9mobile), as the Indian company is looking to boost its assets in the country.

According to Economic Times of India, Nigeria is Airtel’s biggest African market, with about 30% of its revenues coming from the region. The collapse of Etisalat Nigeria is, however, seen as a potential opportunity for consolidation. “Nigeria is Bharti’s largest Africa market where a potential consolidation opportunity is arising with Etisalat Nigeria looking for buyers after having failed to service debt obligations,” said Bank of America-Merrill Lynch in a note to clients.

In January, Bharti Airtel’s chairman, Sunil Mittal (photo), said the telecoms operator would consider mergers or stake sales of some its African assets within a year as part of a rationalization plan.

Even though Nigeria is a major market, Bharti’s local unit has not overtaken the top two operators in the country, ever since it bought Zain Group’s sub-Saharan African assets. But acquiring 9mobile would see it overtake Globacom and give it a chance to compete with MTN.

“Bharti has largely achieved its aim of being No 1 or No 2 in market share in most African markets, with the exception of Nigeria and Tanzania,” Bank of America-Merrill Lynch added.

9Mobile has been a victim of the dollar shortages plaguing the West African nation, due to low oil prices and an economic recession, which has made the company struggle to make repayments to lenders.

Anita Fatunji