Communications and digital technologies minister Solly Malatsi has welcomed the progress made in the proposed merger deal between South Africa’s biggest mobile operator Vodacom and fibre giant Maziv.
Malatsi was responding to the Competition Commission’s announcement yesterday that it had resolved certain competition concerns with the merging parties, following earlier challenges to the multibillion-rand deal.
The announcement comes ahead of a hearing at the Competition Appeal Court later this month, where the companies aim to challenge the blocking of the R14 billion merger.
Maziv is a wholly-owned subsidiary of Remgro-controlled Community Investment Ventures Holdings (CIVH), which has two main operating fibre subsidiaries, Dark Fibre Africa and Vumatel.
Under the deal, Vodacom is looking to acquire a 30% stake in the newly-created Maziv, with an option to increase the stake by 10%.
The Competition Tribunal blocked the deal in October last year after finding that it would likely reduce competition in several markets. It also ruled that the conditions proposed by the merging parties did not adequately mitigate the potential harm to competition.
According to the watchdog, after resolving the competition issues, the matter will now move to the Competition Appeal Court on an unopposed basis, where it will outline how the strengthened conditions address the concerns it had previously raised about the proposed deal.
In a statement, Malatsi congratulated all parties involved in the agreement, saying the solution reached substantially addresses the concerns raised by the Competition Commission.
According to the Department of Communications and Digital Technologies, the deal will contribute to digital transformation and deliver benefits to consumers.
The minister welcomed the parties’ commitment to lower-cost broadband packages, broader coverage and improved connectivity.
This aligns with government’s ongoing efforts to connect more communities to affordable, high-speed and reliable internet, he said.
Vodacom has also welcomed the progress made in the deal, saying it marks a “significant milestone in our ongoing efforts to enhance digital infrastructure and connectivity in South Africa.
“This development follows additional concessions agreed to by Vodacom and CIVH – the current owner of the fibre assets that will form part of Maziv, including Vumatel and Dark Fibre Africa.”
Vodacom says as a result, the Competition Commission will approach the Competition Appeal Court to explain how the expanded set of transaction conditions addresses the concerns that led to the Competition Tribunal’s prohibition of the transaction in October 2024.
The Competition Appeal Court is due to consider the matter on 22 July.
Vodacom Group CEO Shameel Joosub says: “We are thrilled with the Competition Commission’s decision, as it aligns with our purpose of connecting people to a better future and our vision of bridging the digital divide through world-class connectivity – reaching more homes and businesses, including underserved communities.
“Should the transaction be approved by the Competition Appeal Court, I’m confident it will enable us to accelerate network expansion, help address the cost to communicate and contribute meaningfully to job creation.”
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