Business backing for Tau fibre merger appeal
There has been widespread support from business and asset managers for the Department of Trade, Industry & Competition’s decision to file notice that it will appeal against the Competition Tribunal’s blocking of Vodacom and Remgro’s fibre merger, once the authority discloses its reasons for doing so.
The department, under Minister Parks Tau, submitted a notice of appeal in the Vodacom/Maziv merger with the Competition Appeal Court late on Wednesday, to comply with deadlines for the submission of an appeal.
Business Day says the move sparked interest because both the Competition Commission and Competition Tribunal fall under Tau’s department.
The move by Tau’s department comes a day after Vodacom and Remgro told their shareholders they would also appeal against the decision ‘that will be supplemented upon receipt of the Competition Tribunal’s reasons for the prohibition’.
At end-October, the tribunal announced its decision to block the merger in a move that sent shockwaves through SA’s telecoms industry.
The proposed deal would see Vodacom take a 30% stake in Maziv, which houses Remgro’s fibre units Vumatel and Dark Fibre Africa – together worth an estimated R13bn – with the option of increasing the stake to 40%.
While the deadline for an appeal has now passed, the tribunal’s detailed reasons for prohibiting the transaction are yet to be published.
If approved, the Vodacom/Maziv merger would make fibre more readily available and has the potential to create thousands of jobs, which would aid economic growth.
Article disclaimer: While we have made every effort to ensure the accuracy of this article, it is not intended to provide final legal advice as facts and situations will differ from case to case, and therefore specific legal advice should be sought with a lawyer.
