The Competition Tribunal's decision to block a merger between Vodacom and Maziv will likely derail the sector's M&A plans.
decision to block a merger between Vodacom and fibre operator Maziv will likely derail a push by South African telecommunications firms to use big M&A deals as a shortcut to digital infrastructure expansion, analysts said.
It delays investment by current market participants until they determine a commercially viable path to scale Dominant companies like Vodacom and MTN say mergers would allow them to leverage existing networks as a springboard to extending and improving coverage. And some smaller firms, including fibre operators, say tie-ups would provide the funding they need to grow.
But Old Mutual Wealth Private Client research analyst Tasneem Samodien said it would likely lead to stagnation. South Africa’s existing installed fibre capacity is owned by a number of operators of varying sizes. Tying up with them could give the mobile operators access to fibre networks while providing fibre companies capital to expand to new areas.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
In shock development, tribunal blocks Vodacom-Maziv dealThe Competition Tribunal has thrown South Africa’s telecommunications industry into turmoil.
Read more »
Competition Tribunal prohibits Vodacom-Maziv R14bn merger dealThe watchdog issues an order barring the proposed transaction involving mobile operator Vodacom and fibre infrastructure company Maziv.
Read more »
Vodacom disappointed it can’t acquire stake in MazivVodacom says it will wait for the Competition Tribunal to explain why it blocked the transaction before considering its options.
Read more »
Blocking of Vodacom-Maziv deal major ‘setback’ for SAAnalysts are largely of the view the competition authorities erred in prohibiting the proposed R14 billion merger between Vodacom and Maziv.
Read more »
Minister awaits tribunal’s reasons to prohibit Vodacom-Maziv dealOnce the tribunal’s full reasoning is available, the DTIC will assess and advise on the next steps in line with the Competition Act.
Read more »
South Africa's competition authorities must be reined inThe Competition Tribunal is guilty of damaging regulatory overreach in blocking Vodacom's Maziv deal.
Read more »