The Independent Communications Authority of SA (ICASA) has given unconditional approval for Liquid Telecom to acquire Neotel for R6.55 billion.
This follows approval from the Competition Commission in October 2016.
In June, Liquid Telecom announced that it entered into an agreement to acquire Neotel for R6.55 billion. The pan-African telecoms company partnered with Royal Bafokeng Holdings (RBH), a South African investment group. RBH will now own a 30% stake in Neotel.
In a statement, Liquid Telecom said the combined network assets and service platforms will give it unrivalled reach across Eastern, Central and Southern Africa, enabling it to offer access via a single connection to over 40 000km of cross border, national and metro fibre networks across 12 countries.
Commenting on the approval, Nic Rudnick, CEO of Liquid Telecom, said: "We are delighted to have received regulatory approval to complete this transaction. The combined companies will create an unparalleled footprint covering key markets across the continent, giving Liquid Telecom a significant competitive advantage through the breadth, depth and flexibility of our consolidated networks.
"We will be able to offer African companies the highest quality and most extensive connectivity on the continent. We appreciate the efficiency with which this transaction was dealt with by both ICASA and the Competition Commission."
Albertinah Kekana, CEO of RBH, said: "Our decision to partner with Liquid Telecom and Neotel is in line with our diversification strategy which seeks to invest in high growth sectors. Together, we are well positioned to expand through telecommunications infrastructure and services sector in other key markets beyond South Africa."
Speaking on behalf of Neotel, non-executive director in charge, Kennedy Memani, added: "We welcome ICASA's approval of this transaction. Leveraging the strengths of Liquid Telecom, Neotel's staff and customers will benefit from the stability, planned expansion and increased investments into the business. This will enable Neotel to reach its full potential in South Africa and across the African continent."
According Liquid Telecom, it will invest in Neotel's products and services in order to support the rising demand for network services in SA and other African countries.
The transaction provides a scalable platform for further long-term growth, enabling Liquid Telecom to deliver on its vision of a more connected Africa, the company said.
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