Vodacom, investment firm Remgro and fibre group Maziv have decided to appeal the Competition Tribunal’s decision to block Vodacom’s proposed acquisition of a stake in Maziv. The Tribunal last month blocked the country’s top telecoms company from taking a 30% stake in Maziv, saying it would provide a reason at a later stage, dealing a blow to Vodacom’s ambitions to expand its fibre network nationwide.
The Competition Commission, a competition watchdog which investigates and recommends deals to the Tribunal for a final decision, had recommended blocking the proposed deal to the Tribunal because it is likely to prevent or lessen competition substantially in several markets.
Vodacom, which is majority owned by Britain’s Vodafone, and Remgro, which has a 57% stake in Community Investment Ventures Holdings, the parent company of Maziv, said they were forging ahead with the appeal while they were still waiting for the Tribunal’s reasons.
“Shareholders are further advised that the transaction parties remain in discussions with regards to the transaction terms. Should agreement not be reached the transaction may be terminated,” Vodacom said.
