The Competition Commission (CompCom) has recommended that the Competition Tribunal approves the proposed transaction whereby Vumatel intends to acquire Herotel, with conditions.
In a statement, the CompCom says the primary acquiring firm, Vumatel, is wholly controlled by Community Investment Ventures Holdings (CIVH). CIVH also controls several firms including Dark Fibre Africa.
Vumatel is a fibre network operator that provides wholesale fibre-to-the-home (FTTH) and fibre-to-the-business infrastructure at the last-mile level to internet service providers.
The competition watchdog adds that DFA largely offers wholesale metropolitan fibre to fixed network operators, mobile network operators and other downstream companies requiring access to its fibre network.
The primary target firm, Herotel, is not controlled by any firm and operates at the national fibre infrastructure, last-mile fibre infrastructure, retail internet access services and fixed wireless access levels of the telecommunications market.
In 2022, Vumatel acquired a 45% non-controlling stake in Herotel and later announced that it was looking to snap up 100% the company.
Herotel employs more than 1 655 people across 53 offices and provides services in more than 605 towns and suburbs to over 145 000 on-network fixed broadband customers.
According to the commission, to address competition concerns, Vumatel has agreed to maintain pre-merger open access and to continue to provide services on terms that are transparent and non-discriminatory.
Further, Vumatel has also made public interest commitments to roll out FTTH in low-income areas.
“The proposed transaction does not raise significant public interest concerns,” says the commission.
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