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Maziv 'disappointed' by tribunal outcome
29 Oct 2024
The Competition Tribunal has decided to block the proposed merger between Vodacom and Maziv, the holding company of fibre giants Dark Fibre Africa and Vumatel. The ruling, delivered today, follows an extensive 26-day hearing that concluded in September, with final submissions received on 16 October. Testimony was heard from a wide range of stakeholders, including the merging parties, competitors such as Frogfoot, Telkom, MTN, and Rain.
The proposed transaction would have seen Vodacom, South Africa's largest mobile operator, acquire a stake in Maziv, one of the country's leading fibre infrastructure providers.
Vodacom said this move was to accelerate fibre rollout, particularly in underserved communities, and potentially bridge the digital divide.
However, concerns were raised about the potential impact on competition in the telecommunications sector.
In a statement shared with Bizcommunity, Maziv expressed disappointment but emphasised respect for the Tribunal's process:
Maziv acknowledges the recent decision by the Competition Tribunal prohibiting the proposed merger between MAZIV and Vodacom. The company is disappointed by the outcome but respects the Tribunal’s process. We will await the reasons for the prohibition in order to consider our options and remain committed to driving innovation and economic growth through the power of connectivity.
Minor setback
This decision is a setback for Vodacom's ambitions to expand its fibre footprint and potentially reshape the competitive dynamics of the market.
Vodacom's pursuit of Maziv began in 2021 with a proposed investment of R14bn.
The company aimed to leverage Maziv's extensive fibre network to enhance its service offerings and expand connectivity across the nation.
However, the Competition Commission recommended prohibiting the merger in 2023, citing concerns about potential anti-competitive effects.
