South Africa’s Competition Tribunal has rejected Vodacom’s proposed merger with the fibre company Maziv, a decision that hampers Vodacom’s efforts to broaden its fibre network across the country.
In an official statement on Tuesday, the Competition Tribunal, which holds the final authority over mergers, indicated that it will provide a detailed explanation of its ruling soon.
Vodacom initially announced in 2021 its intention to invest 6 billion rand ($339 million) in cash, along with certain fibre assets valued at 4.2 billion rand, to acquire a 30% stake in Maziv. Maziv, the parent company of Dark Fibre Africa and Vumatel, was to serve as the focal point of this expansion.
However, last year, the Competition Commission recommended that the tribunal block the merger, citing potential negative impacts on competition in multiple markets. According to the commission, the measures proposed by Vodacom and Maziv were insufficient to address the anticipated competition concerns that the merger could trigger.
