Communications regulator Icasa has decided to approve Vodacom’s R7bn acquisition of Neotel, but has attached conditions to the deal.
That’s the word from Icasa spokesman Paseka Maleka, who declined on Monday to say what the conditions are that the authority intends attaching to the deal.
“We are pleased to receive approval for the transaction. We will work with Icasa to finalise the conditions of the approval,” Vodacom spokesman Richard Boorman told TechCentral in an e-mail.
“We are encouraged that the acquisition is moving and brings us closer to providing fixed connectivity to homes and businesses,” he said.
The Competition Commission, which could still scupper the deal, is yet to decide whether to green-light the acquisition. If it does, however, it is also likely to attach a range of conditions to the transaction.
Bloomberg reported that Icasa has attached two conditions to the acquisition. “The takeover will be subject to compliance with a local ownership law and adherence to terms regarding the roll-out of broadband infrastructure and services,” the news wire service quoted Icasa chairman Stephen Mncube as saying.
Maleka told TechCentral that Icasa intends holding a press conference on Wednesday at which it will explain the conditions in more detail.
Two Vodacom competitors, MTN and Cell C, had filed objections at Icasa, warning that the deal could have a negative impact on competition in South Africa’s telecommunications industry if it is allowed to go ahead. — © 2015 NewsCentral Media
