Vodacom Group CEO Shameel Joosub has criticised the Competition Tribunal’s decision to block his company’s acquisition of fibre operator Maziv, describing it as a “travesty” for South Africa.
In a call with journalists on Monday to discuss Vodacom’s interim financial results for the six months to end-September 2024, Joosub said he was “disappointed” at the tribunal’s decision to uphold a recommendation by the Competition Commission that the deal be blocked on competition grounds.
He said it is particularly disappointing given that the proposed deal, which would have seen Vodacom directly invest R6-billion for a co-controlling 30% stake in Maziv (with the option to increase this to 40%) as well as contributing its own fibre assets to the merged business, was supported by communications regulator Icasa, the department of trade, industry & competition and even some of Vodacom’s rivals.
He said Vodacom has no other acquisitions in the fibre infrastructure space lined up and is unlikely to pursue other acquisitions given how long it has taken the competition authorities – three years – to probe the Maziv deal, only to block it.
“We would not look at other M&A deals given that we don’t want to be stuck in the competition authorities for another three years,” Joosub said.
“We are currently considering other strategic options, but it’s a travesty for South Africa that we lost this opportunity for such a material investment, which would have been between R14-billion and R17-billion in investment plus an additional R25-billion in capex. It’s a major, major loss for the South African fibre industry,” he said.
‘Pro-competitive benefits’
Speaking to TechCentral in a subsequent interview on Monday, Joosub said the time taken for the competition authorities to consider the deal doesn’t make sense. “One would have hoped the commission and the tribunal would have seen the pro-competitive benefits of the deal.”
Read: Blocked Vodacom-Maziv deal derails telecoms M&A
Vodacom has said it will wait for the Competition Tribunal to publish the reasons for its decision to prohibit the acquisition and said it may still take the matter on review at the competition appeal court. – © 2024 NewsCentral Media
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