Vodacom's Purchase of Maziv Stake Gets Block Recommendation From Competition Commission

By Joe Hoppe

Vodacom said a South African commission has recommended that competition authorities block the company's planned acquisition of a 30% interest in a newly formed telecoms infrastructure company, Maziv Proprietary Ltd.

The South Africa-based telecommunications company--which is majority owned by the U.K.'s Vodafone Group--said Tuesday that the Competition Commission has recommended the Competition Tribunal prohibit the transaction, a move Vodacom said it was "surprised and disappointed by," as it said it has endeavored to address competition-related concerns.

The company said the recommendation isn't the end of the process, and the next step is for the transaction to be presented to the tribunal. Vodacom said it plans to showcase strong public interest and pro-competitive advantages the transaction would have for the fiber market and South Africa.

The terms of the planned transaction were first disclosed in November 2021. Vodacom plans to buy a 30% stake in Maziv, which will house all of the material assets owned by Community Investment Ventures Holdings--including Vumatel and Dark Fibre Africa--as well as contribute certain of its own fiber assets.

To date, the Independent Communications Authority of South Africa has granted approval, subject to the finalization of conditions.

Write to Joe Hoppe at joseph.hoppe@wsj.com

(END) Dow Jones Newswires

August 08, 2023 12:25 ET (16:25 GMT)

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