Blue Label acquires 3G Mobile in bid to conquer Africa

South African telecoms company Blue Label has acquired 3G Mobile in a R1.9billion deal, which will see its expansion platform – financing and supplying mobile devices – extending into the rest of the continent for the very first time.

Until now, Blue Label’s core operations have been limited to SA, Mexico and India, however, 3G supplies and distributes mobile phones and tablets to major retailers across SA and Sub-Saharan Africa, operating in eight African countries, with offices in SA, Namibia, Botswana and Mauritius and distribution channels into Zambia, Zimbabwe, Swaziland and Lesotho.

3G has distribution rights for all major tier one and two mobile device and handset manufacturers, including Apple, Samsung, Huawei, HiSense, ZTE and Nokia, which is also a new realm for Blue Label, which has in the past only provided handsets from its own house brand low-cost tier three smartphones.

Related stories:

• Nigerian telecoms firm IHS to double size of operations
• Africa's telecoms movers and shakers
• South Africa Prepares For the Next Evolution in the Telecoms Landscape

“Both of these functions supplement Blue Label’s strategic objectives to provide value added services to both Cell C and its own customer base,” said the companies in a report. “3G Mobile provides the ideal platform to consolidate Blue Label’s low cost and certified pre-owned mobile handset divisions into a consolidated group. The resultant acquisition is both earnings accretive and provides a solid foundation for distribution into the burgeoning low-cost smartphone market.”