MTN Not Worried About Vodacom’s Merger With Fiber Infrastructure Firm

MTN South Africa has remained unconcerned regarding Vodacom’s ongoing efforts to merge with Maziv, a fiber infrastructure company. 

As the Competition Tribunal continues to hear testimonies from various witnesses about this proposed merger, MTN remains unconcerned about the potential implications for the telecommunications market. 

The hearings come in the wake of the South African Competition Commission’s recommendation against the merger, which it argued could hinder competition across several markets.

Background of the Merger

The merger between Vodacom and Maziv has been a topic of significant discussion since the Competition Commission’s recommendation was issued in August 2023. 

The Commission highlighted concerns that the merger could adversely affect competition, prompting Community Investment Ventures Holdings (CIVH) and Maziv to assert that the recommendation does not end their pursuit of the merger. 

They plan to approach the tribunal to advocate for the deal’s approval, emphasizing its potential benefits to the market.

Maziv was established in 2022 by CIVH, which consolidated its fiber assets, including Vumatel and Dark Fibre Africa (DFA), into one comprehensive entity. 

Under the terms of the Vodacom-Maziv deal, Vodacom aims to acquire a 30% stake in Maziv, valued at approximately R4.2 billion ($231.8 million) in assets and at least R6 billion ($329.8 million) in cash, with an option to increase its stake by an additional 10%.

Claims of Market Benefits

Both Vodacom and CIVH assert that the merger will enhance market conditions by making Vodacom’s fiber assets available on an open-access basis. 

They argue that this will promote transparency and non-discrimination in the market. 

The companies project that the merger will facilitate the expansion of fiber infrastructure to around one million new households in lower-income areas, generate up to 10,000 new jobs, and allocate at least R10 billion ($594.6 million) for capital expenditure. 

Additionally, they plan to support small to medium enterprises through a dedicated R300 million fund.

MTN’s Perspective

Despite the ongoing discussions and the Competition Commission’s concerns, MTN remains unconcerned regarding the Vodacom-Maziv fiber infrastructure merger. 

Charles Molapisi, the CEO of MTN South Africa, stated that while they do not oppose or support the merger, they believe that any market consolidation must be scrutinized to prevent substantial harm to competition. 

He emphasized the importance of ensuring that any concerns regarding anti-competitive conduct are adequately addressed through comprehensive and enforceable conditions.

MTN has also confirmed its involvement in the ongoing hearings at the Competition Tribunal, having been approached for information and insights, which is standard practice in such proceedings. 

This participation underscores MTN’s commitment to remaining engaged in the regulatory process surrounding the merger.

Read More: Commission Says No to Vodacom-Maziv Merger

Conclusion

As the Competition Tribunal continues to deliberate on the Vodacom-Maziv merger, MTN’s neutral stance reflects a broader industry perspective on the evolving telecommunications landscape in South Africa. 

The outcome of this merger could have significant implications for competition and infrastructure development in the sector. 

However, for now, MTN remains unconcerned about the potential impacts of Vodacom’s fiber merger, focusing instead on the overall growth and consolidation of the fiber infrastructure market in the country.

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