Major Development in Vodacom and Maziv Merger Saga

South Africa’s Minister of Trade, Industry, and Competition is challenging a decision by the nation’s Competition Tribunal that blocked Vodacom Group Ltd.’s R13.2 billion deal to acquire a stake in Remgro Ltd.’s fibre businesses. Parks Tau, who oversees the competition regulators in the country, is seeking to overturn the Tribunal’s decision and allow the merger to proceed.

This rare intervention by the newly appointed minister represents a significant challenge to South Africa’s antitrust regulators, who unexpectedly blocked the acquisition in October. The parties involved in the deal have argued that substantial investment is crucial for South Africa, particularly for enhancing digital infrastructure in lower-income areas.

Tau in a media statement issued at the time the deal was blocked, he highlighted that the merging parties had committed to “substantial public interest conditions to significantly boost investments and growth of fibre and mobile connectivity in South Africa.” He emphasized that this commitment aligns with South Africa’s priorities for industrialization, re-industrialization, and investment to foster economic growth and create jobs.

In his notice of appeal, Tau indicated his desire for the merger between Vodacom and Maziv to be approved. The minister’s notice to appeal follows a similar move by the merging parties, who are also challenging the tribunal’s decision.

A large number of stakeholders have been called to respond to the appeal, including Vodacom’s main competitor, MTN Group Ltd. The industry largely supports the deal, agreeing that consolidation is necessary for future growth prospects. As part of Vodacom’s deal, the company plans to invest R10 billion in fibre rollout in low-income areas, creating 10,000 jobs, according to previous statements.