South Africa’s anti-trust watchdog will not oppose the R13.2 billion ($743 million) fiber transaction between Vodacom Group and Remgro at the Competition Appeal Court, increasing chances that the deal will go ahead.
The Competition Commission reached a deal with Vodacom and Maziv — a wholly owned unit of Remgro’s Community Investment Ventures Holdings — on revised conditions that substantially address the anti-trust concerns raised when when it initially opposed the transaction, the regulator said in an emailed statement on Tuesday.
Vodacom’s proposed acquisition of 30% of Maziv was blocked by the anti-trust tribunal in October.
The telecoms giant and Remgro then turned to the Competition Appeal Court that is scheduled to hear the matter from July 22 to 24.
In a rare move, South African Minister of Trade, Industry and Competition Parks Tau also appealed the order that prohibited the deal.
The revised conditions include improved capital-expenditure commitments by Maziv, an agreement to maintain lower-cost broadband packages and changes that will limit the merged entity’s incentives to foreclose competitors.
“Access to reliable, high-speed internet is the cornerstone of a dynamic economy and a democratic society,” Commissioner Doris Tshepe said.
“The commission is confident that the revised conditions agreed with the merger parties will ensure that South Africa will benefit from the continued competitive prices and product choices in this critical sector.”
The matter will now proceed to the Competition Appeal Court unopposed basis and the commission will inform the court how the enhanced conditions address the concerns it previously raised with the proposed transaction, it said.
Vodacom’s shares rose as much as 1.4% and were 1.2% higher at 2:52 p.m. in Johannesburg.
BLOOMBERG