The regulatory process is a test of perseverance, says Maziv
After years of regulatory hurdles, the Competition Appeal Court has approved the long-delayed R14 billion merger of Vodacom, South Africa’s largest mobile operator, and fibre infrastructure giant Maziv.
The decision ends a three-year impasse and clears the way for Vodacom’s acquisition of a 30% stake in Maziv, which houses the fibre assets of Community Investments Ventures Holdings, including Vumatel and Dark Fibre Africa.
The acquisition will proceed under the revised conditions that were agreed to by the merger parties and the Competition Commission ahead of the 22 July hearing.
Last month, the commission confirmed it had reached an agreement with Vodacom and Maziv on these conditions, addressing the competition concerns that had led it to recommend blocking the deal.
In October 2024, the Competition Tribunal prohibited the merger, citing the risk of reduced competition and potential harm to smaller internet service providers.
In a statement today, Vodacom says the ruling is a milestone in its strategy to expand its fibre footprint and boost digital connectivity.
Vodacom CEO Shameel Joosub.
“We are delighted with the [Competition] Appeal Court’s decision, which paves the way for us to bring the benefits of enhanced fibre infrastructure to more South Africans. This acquisition is a cornerstone of our strategy to improve connectivity, drive digital inclusion and support South Africa’s digital economy,” says Shameel Joosub, Vodacom Group CEO.
Vodacom and Maziv will now prioritise finalisation of the only remaining regulatory requirement, which is unconditional approval from the Independent Communications Authority of South Africa, which conditionally approved the transaction in November 2022.
Speaking to ITWeb this morning, Pieter Uys, Maziv chairman and former Vodacom CEO, welcomed the outcome. “It’s been a very long journey and justice was finally decided yesterday. We submitted the transaction to the competition authorities in November 2021.
“On 29 October 2024, after the Competition Commission referred the matter to the tribunal, the tribunal also prohibited the transaction.”
Uys explained that after taking the case to the Competition Appeal Court, the parties engaged with the commission to strengthen commitments.
“This is what happened here – the public interest commitments that we made more than offset and outweigh all the concerns that were raised. The Competition Appeal Court listened to all of this; they looked at what the tribunal considered and decided to set aside the tribunal’s decision [to prohibit the merger].”
He believes the commission will also view the decision positively. “I think the Competition Commission will be happy because they are getting exactly what they were concerned about and we addressed all their concerns.
“There are lots of public interest commitments made by both parties – Vodacom and Maziv – and in time, we will make those conditions and commitments public.”
Maziv chairman Pieter Uys. (Photograph by Lesley Moyo)
Reflecting on the broader impact, Uys commented: “When I was at Vodacom, we always said ‘let’s democratise mobile communications’ but more recently, I realised that it is not just about having a phone. When you are at home or at work, you want to be connected to the world; you want to have unlimited access to the internet. This is exactly what this transaction will do to South Africa.”
He added that the deal will “eventually put affordable and unlimited internet in the hands of so many more South Africans”. This will be underpinned by R12 billion in additional fibre investments, most directed at lower-LSM areas, such as Alexandra, where a trial already offers high-speed unlimited internet for under R100 a month.
Uys described the regulatory process as a test of perseverance. “If you continue to believe in something, which is something we did – we said ‘we are never going to give up’ – and we took this right to the end and the appeals court listened to us and now approved the transaction.”
JSE-listed Remgro today told shareholders it is pleased with this positive outcome, which represents a milestone in the fulfilment of the conditions precedent for the transaction.
