Vodacom merger approved

Johannesburg, 26 Mar 2008

The Competition Tribunal has approved the merger between Vodacom Service Provider Company, Global Telematics SA and Glocell Service Provider Company.

Last week, Business Day reported that tribunal chairman David Lewis had accused Vodacom of telling "blatant lies". This allegation sparked fears that the cellular operator would not be successful in making its R206 million acquisition of Global Telematics.

However, this morning the tribunal revealed it had approved the merger unconditionally.

It noted that Vodacom would terminate the service provider licence held by Global Telematics and acquire the company's business "relating to the registration of contract and prepaid subscribers on the Vodacom network".

"In order for this transaction to take place, it is necessary for Global Telematics to acquire Glocell and its subscriber base. Post-transaction, Global Telematics will have effective control of Glocell and Vodacom will control Global Telematics' cellular business, which relates to the provision of cellular services and products on behalf of Vodacom," it said.

The reasons for its decision will be released shortly, the Competition Tribunal said.

This morning, Vodacom chief communications officer Dot Field confirmed the company had received written confirmation from the Competition Tribunal that the deal was approved.

She added: "Vodacom wishes to state that at no stage did it lie to the competition authorities on this or any previous occasion."