The Department of Trade, Industry and Competition (DTIC) is waiting for the Competition Tribunal to provide its reasons for prohibiting the proposed merger between Vodacom and Maziv in a R14 billion deal.
This, after yesterday’s announcement by the Competition Tribunal that it had prohibited the transaction.
However, it did not give reasons for blocking the deal, saying it will provide the details for the move in due course.
Vodacom and Maziv are pondering their next steps, with considerations to appeal on the table.
The order came after in August last year, the Competition Commission recommended the R14 billion merger be prohibited.
The Competition Commission and Competition Tribunal are entities of the DTIC.
In a statement, minister Parks Tau says he has noted the order issued by the Competition Tribunal prohibiting the proposed merger.
“This order follows the Competition Commission’s initial recommendation to prohibit the merger, citing significant concerns that it could substantially reduce competition in critical markets, particularly within the 5G fixed wireless access and fibre infrastructure sectors,” says the DTIC.
“The ministry participated in the merger proceedings on public interest grounds in line with merger provisions of the Competition Act, which led the merger parties committing substantial public interest conditions to significantly boost investments and growth of fibre and mobile connectivity in South Africa.
“This is in line with South Africa’s priorities for industrialisation, reindustrialisation and investment to foster economic growth and create jobs,” it adds.
The department says Tau awaits the forthcoming publication of detailed reasons for the tribunal’s decision.
“Once the tribunal’s full reasoning is available, the ministry will assess and advise on the next steps in line with the Competition Act,” it says.
The tribunal is an independent adjudicative body set up in terms of section 26 of the Competition Act, No 89 of 1998. It adjudicates competition matters, in accordance with the Competition Tribunal Act of 1998 and has jurisdiction throughout the country.
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