Telkom-BCX no deal!

By Staff Writer for Telkom
Johannesburg, 28 Jun 2007

The much-anticipated R2.4 billion merger between Telkom and Business Connexion (BCX) will not go ahead, the Competition Tribunal ruled this afternoon.

Telkom made its initial offer to take over BCX 18 months ago, in a bid to diversify its portfolio with a strong IT services arm. BCX shareholders only accepted a renewed offer in June last year.

However, in December the Competition Commission recommended the merger should not be approved, as it would create an anti-competitive environment within the IT sector.

Dimension Data, the Internet Service Providers' Association of SA and the South African SMME Forum opposed the deal.

Telkom has said it would look for a global IT acquisition if the tribunal does not approve the proposed BCX acquisition.

BCX has also said it would look for another buyer if the Telkom transaction fell through.