By Loni Prinsloo.
South Africa’s Competition Appeal Court approved Vodacom Group’s R13.2 billion ($752 million) deal to acquire the fibre assets of Remgro.
Vodacom had proposed buying 30% of Maziv — a wholly owned unit of Remgro’s Community Investment Ventures Holdings — with an option to increase the stake to 40%. Maziv’s key operating companies are Dark Fibre Africa and Vumatel, which build and own fibre-optic networks.
The transaction is crucial for the African unit of Vodafone Group Plc as it seeks to boost data services and take on rivals including MTN Group. The demand for audio, video and other broadband services is booming on the continent, home to the world’s youngest population.
The acquisition “is a cornerstone of our strategy to improve connectivity, drive digital inclusion, and support South Africa’s digital economy,” Vodacom Chief Executive Officer Shameel Joosub said.
The ruling comes two years after the antitrust watchdog first recommended blocking the acquisition. In July, following additional investment commitments from the parties, and after South African Minister of Trade, Industry and Competition Parks Tau backed the transaction, the regulator said it wouldn’t oppose the deal.
Vodacom and Maziv will now prioritise finalisation of the only remaining regulatory requirement, which is an unconditional approval from the Independent Communications Authority of South Africa, the Johannesburg-based telecommunications company said in a statement.
Icasa gave the transaction its conditional support in November 2022.