MTN has gained the advantage over Huge Group in the fight for mobile services provider iTalk Cellular. On Friday, the Competition Commission filed for a hearing date with the Competition Tribunal to recommend the approval of MTN's purchase of the remaining 59% of iTalk.
The ruling comes after almost 80 days since the acquisition dispute began between Huge Group and MTN.
Last year November, AltX-listed Huge Group revealed its intention to purchase 59% of cellphone and airtime retail distributor iTalk Cellular from the Bebinchand Seevnarayan Trust.
In May this year, Huge Group received approval for its proposed acquisition, in a deal valued at about R511 million. Mobile operator MTN already owns a 41% stake in iTalk Cellular and has pre-emptive rights over the rest of the stake.
After Huge Group's bid for iTalk Cellular, MTN decided to step in and exercise its pre-emptive rights and contest the deal. MTN initially declined a previous offer to purchase more shares in iTalk Cellular, but decided later to challenge the deal with Huge Group.
Diminishing competition
MTN has said that its aim behind the strategic acquisition is to use iTalk Cellular's influence to strengthen MTN's distribution network across SA, particularly in KwaZulu-Natal - one of iTalk Cellular's largest consumer markets.
Huge Group CEO Anton Potgieter is opposing the deal between MTN and iTalk, as he believes the deal would diminish competition in the cellular telecommunications market.
In a bid to block the sale, Huge Group submitted its case to the Competition Commission.
Related stories:
MTN scuppers Huge deal
MTN bid 'not predatory'
Huge waits for MTN's next move
Huge Group restructures board
Share