Wary of repeating mistakes made in the past, the UAE’s Etisalat is taking its time before agreeing to pay E4.2bn ($5.5bn) for a 53 per cent stake in Maroc Telecom.

It seems Etisalat has learnt its lesson from a disastrous venture into India, where it was forced to shut down operations after the government cancelled 122 second generation (2G) mobile licences last year. The company ended up paying a hefty price for its lack of understanding of the market – the Indian arm generated more than $1bn in losses.

As increased competition in its existing markets from smaller operators such as Du forces Etisalat to expand into new areas, the company is taking a more cautious approach.

Both French conglomerate Vivendi and Etisalat are said to be pushing for specific terms to be included in the deal.

Experts in the regional telecoms sector say that Etisalat has been asking for regulatory measures that will limit competition in the telecoms sector, rumours the company has chosen not to comment on.

The Moroccan government, which holds a 30 per cent stake in Maroc Telecom and needs to agree to the transaction in order for it to go through, recently announced it wants local partners to be involved in the acquisition.

The political aspect of the negotiations – with each government having ownership in either of the telecoms companies – adds to the complexity of the talks.

If the deal does go through, it will be one of the largest in the Middle East this year, which is all the more reason Etisalat will want to make sure it is doing it right.