The Competition Tribunal blocked Vodacom's proposed merger with fibre group Maziv on Tuesday, a blow for the ambitions of the country's biggest mobile operator to expand its fibre footprint nationwide.
The tribunal, which makes the final ruling on deals, said its reasons for the decision will be issued later.
Vodacom announced in 2021 that it would pay R6bn in cash and in certain fibre assets valued at R4.2bn for a 30% stake in a newly formed company called Maziv, the parent company of Dark Fibre Africa and Vumatel.
Last year the Competition Commission recommended to the tribunal that the proposed merger be prohibited on the grounds it is likely to substantially prevent or lessen competition in several markets.
The commission said the conditions offered by the merger parties did not fully address the resultant harm to competition.
Vodacom said it is awaiting the tribunal's reasons for blocking its proposed merger with Maziv before considering all options, which may include an appeal.
Reuters
Vodacom's proposed merger with Maziv blocked by Competition Tribunal
The Competition Tribunal blocked Vodacom's proposed merger with fibre group Maziv on Tuesday, a blow for the ambitions of the country's biggest mobile operator to expand its fibre footprint nationwide.
The tribunal, which makes the final ruling on deals, said its reasons for the decision will be issued later.
Vodacom announced in 2021 that it would pay R6bn in cash and in certain fibre assets valued at R4.2bn for a 30% stake in a newly formed company called Maziv, the parent company of Dark Fibre Africa and Vumatel.
Last year the Competition Commission recommended to the tribunal that the proposed merger be prohibited on the grounds it is likely to substantially prevent or lessen competition in several markets.
The commission said the conditions offered by the merger parties did not fully address the resultant harm to competition.
Vodacom said it is awaiting the tribunal's reasons for blocking its proposed merger with Maziv before considering all options, which may include an appeal.
Reuters
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