MTN, Bharti deal needs S.Africa govt clearance

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JOHANNESBURG/MUMBAI (Reuters) - The proposed tie-up between mobile phone group MTN and Bharti Airtel needs cabinet level approval in South Africa, a senior official said on Monday, as the deal enters a critical week.

The statement came as a team from the Indian firm was on the ground in South Africa meeting stakeholders, according to a person familiar with the situation, who said it was possible the talks could extend a few days past a Sept 30 deadline.

Bharti recently sweetened terms to mollify MTN shareholders.

A top South African treasury official said the government was in talks with Indian authorities.

"As far as we are concerned we would like to promote south-south relations. The relationship between South Africa and India is a very important relationship," Treasury director-general Lesetja Kganyago told journalists.

"The decision will be taken by the executive ... A transaction of this magnitude is not a decision you just take on your own," Kganyago said.

South African authorities have made clear in recent days that the transaction faces close scrutiny.

Earlier on Monday, the country's communication regulator said the deal may face a public hearings.

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