SA: Vodacom Responds to Regulator’s Rejection of Maziv Acquisition, Stresses Benefits to Competition

South African mobile network operator, Vodacom, has reacted to the recent decision of the country’s competition regulator to block its acquisition of Maziv, a holding company that includes fiber network operators Dark Fibre Africa (DFA) and Vumatel. The regulator stated that the proposed deal could significantly impede competition across several markets and that the offered conditions failed to adequately address the resulting competition issues.

In response, Vodacom expressed its disappointment in the regulator’s decision while reiterating its intention to explore alternative routes to present its case. The company underlined its extensive engagement with the Competition Commission’s investigation team and highlighted the proactive steps taken by both Vodacom and CIVH, the entity that owns Maziv, to address competition-related concerns.

Vodacom emphasized its commitment to fostering public interest and promoting competitive advantages within the fiber market. Despite the regulator’s concerns, Vodacom is convinced that the acquisition would contribute positively to bridging the digital divide and enhancing competition. The company stressed its dedication to facilitating access to Maziv’s fiber assets.

The commitment of Vodacom to ensure the deal’s positive impact on digital inclusion and competition includes plans for creating up to 10,000 new jobs, supporting SMME (Small, Medium, and Micro Enterprises) development through a dedicated fund of R300 million over three years, and providing fiber infrastructure to at least one million homes in economically disadvantaged areas over five years.

Vodacom highlighted the substantial investment of over R13 billion associated with the acquisition, especially crucial at a time when attracting capital investment to South Africa is particularly challenging.

Following the regulator’s recommendation, the case will now proceed to the competition tribunal, the body responsible for adjudicating matters referred by the commission. If the tribunal upholds the commission’s decision to reject the transaction, Vodacom has the option to appeal to the Competition Appeal Court, which deals with appeals and reviews of tribunal rulings.