Neotel needs to make a roaming offer to all mobile network operators (MNOs) before competition authorities will consider a "restructured transaction" between the company and Vodacom.
This after Vodacom and Neotel participated in a Competition Tribunal prehearing yesterday, as part of Vodacom's plans to buy Neotel for R7 billion. This week Vodacom confirmed that the parties had reached a new deal which takes Neotel's spectrum out of the equation and sees the company rather offering a roaming arrangement to all the mobile network operators, including Vodacom.
The deal has been on the cards since May 2014, but rival telco operators have been clear they believe the merger would cause an uncompetitive ripple effect, primarily because of spectrum allocation.
The new deal would see Vodacom acquiring the majority of Neotel's assets related to its fixed line business, excluding Neotel's spectrum and licences.
"Once the roaming offer has been made and the MNOs have responded, Vodacom and Neotel will re-notify the details of the restructured transaction with the Competition Commission, and it was agreed that the matter will be dealt with expeditiously," according to a Vodacom Statement.
The Tribunal also agreed to hold a prehearing with all the parties within five days of the re-notification to the Competition Commission.
The Tribunal will then decide whether the notification meets the requirements of the law and determine "any further directions that might be appropriate to be given at that stage in order to ensure an expeditious but appropriately thorough consideration of the merger by the Commission".
Share
