
Vodacom Group CEO Shameel Joosub has criticised the Competitors Tribunal’s choice to dam his firm’s acquisition of fibre operator Maziv, describing it as a “travesty” for South Africa.
In a name with journalists on Monday to debate Vodacom’s interim monetary outcomes for the six months to end-September 2024, Joosub stated he was “upset” on the tribunal’s choice to uphold a advice by the Competitors Fee that the deal be blocked on competitors grounds.
He stated it’s notably disappointing on condition that the proposed deal, which might have seen Vodacom instantly make investments R6-billion for a co-controlling 30% stake in Maziv (with the choice to extend this to 40%) in addition to contributing its personal fibre belongings to the merged enterprise, was supported by communications regulator Icasa, the division of commerce, business & competitors and even a few of Vodacom’s rivals.
He stated Vodacom has no different acquisitions within the fibre infrastructure area lined up and is unlikely to pursue different acquisitions given how lengthy it has taken the competitors authorities – three years – to probe the Maziv deal, solely to dam it.
“We’d not take a look at different M&A offers on condition that we don’t wish to be caught within the competitors authorities for one more three years,” Joosub stated.
“We’re presently contemplating different strategic choices, however it’s a travesty for South Africa that we misplaced this chance for such a cloth funding, which might have been between R14-billion and R17-billion in funding plus an extra R25-billion in capex. It’s a significant, main loss for the South African fibre business,” he stated.
Learn: Blocked Vodacom-Maziv deal derails telecoms M&A
Vodacom has stated it should await the Competitors Tribunal to publish the explanations for its choice to ban the acquisition and stated it might nonetheless take the matter on evaluation on the competitors enchantment court docket. – © 2024 NewsCentral Media
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