South Africa’s largest wireless operator, Vodacom, has reportedly struck a deal with local unit Neotel to acquire the company from India-based Tata Communications.
Reports say Vodacom’s acquisition will allow the company to increase its communications offerings through the Internet provider. Vodacom released a statement Monday confirming the deal, made for $675 million.
Specifically, the deal will position Vodacom against Telkom, the nation’s top fixed-line operator, with Internet services.
The transaction remains subject to regulatory clearance; in a separate statement, Tata said it would be working with competition authorities to process the merger as quickly as possible.
Abuse of dominance probe
News of Vodacom’s acquisition coincided with reports that the nation’s Competition Commission will probe the company after smaller rival Cell C filed a complaint that Vodacom is abusing its dominant market position.
Vodacom confirmed that it was the subject of an investigation. Cell C lodged complaints against both Vodacom and MTN in October of last year, report say. Cell C accuses the two of charging excess fees and making exclusionary deals with suppliers.
The Commission declined to confirm whether a probe has been opened into MTN as well.
Full content: Bloomberg and Tech Central
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
FTC Urged to Enforce Rarely Used Antitrust Law Against Retail Giants
Mar 28, 2024 by
CPI
UK’s Fingleton Bolsters Team with New Additions
Mar 28, 2024 by
CPI
Britain’s Competition Regulator Clears Aviva’s Acquisition of AIG Life UK
Mar 28, 2024 by
CPI
White House Implements New AI Safeguards to Protect Rights and Safety
Mar 28, 2024 by
CPI
Denver Court Sets August Date for Kroger-Albertsons Merger Showdown
Mar 28, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Real Estate & Antitrust
Mar 27, 2024 by
CPI
Systematic National Evidence of Steering by Real Estate Agents
Mar 27, 2024 by
CPI
Compliance Now! Actionable Antitrust Advice for the Residential Real Estate Industry
Mar 27, 2024 by
CPI
Real Estate Commissions: Some Insights from the Economics of Multi-Sided Platforms
Mar 27, 2024 by
CPI
New Ideas for Promoting Real Estate Brokerage Price Competition
Mar 27, 2024 by
CPI