In a statement published on February 8, 2016, on its website, French telecom company Orange announced the signing of an agreement with the Luxembourg telecom group Millicom International Cellular regarding the acquisition of its subsidiary Tigo in the Democratic Republic of Congo. Millicom said the amount of the transaction is $160 million.

With nearly 40 million subscribers, DR Congo is the second biggest telecom market of West and Central Africa, behind Nigeria. Presently competing for this market are: Vodacom, Airtel, Orange, Tigo, Africell and Yozma Timeturns.

For Orange, acquiring Tigo RDC is an opportunity to reinforce its position in the country and the continent even. The deal is currently awaiting the approval of Congolese authorities. It falls in line with the group’s strategic expansion plan in Africa, initiated in January 2016 with talks with Cellcom regarding its acquisition in Liberia, and those with Bharti Airtel regarding the taking-over of its assets in Burkina Faso and Sierra Leone.

For Millicom also, leaving DR Congo is part of its strategy to consolidate and focus its resources in more promising markets. This was explained by the group’s CEO. The sum obtained from the transaction should help strengthen their balance sheet, allow them to reinvest in their existing markets in Latin America and Africa, thus boosting revenues and cash flows.