Telecommunications group MTN believes the investment in South Africa’s fibre network infrastructure is positive, and the consolidation of the industry is an inevitable – and even a desirable feature – of the national and international landscape.
The comments are in response to the current hearings being held by the Competition Tribunal on the proposed acquisition of the fibre assets of Community Investment Ventures Holdings by telecommunications group Vodacom.
The proposed merger will result in Vodacom acquiring joint control of Business Venture Investments (NewCo), which was renamed Maziv during the course of the Competition Commission’s assessment of the proposed transaction.
The Competition Commission recommended that the Tribunal prohibit the proposed transaction.
“We can confirm that we are participating in the Competition Tribunal’s merger proceedings in the Vodacom and Maziv transaction,” said MTN South Africa CEO Charles Molapisi, noting that, during its investigation of the proposed merger, the Tribunal contacted MTN to request information and solicit its views on the proposed merger in line with standard practice.
“MTN is not opposing the merger, nor does it support a prohibition of the proposed Vodacom/Maziv merger.”
Molapisi noted that where there was market consolidation, scrutiny was required to ensure that there was no substantial harm to competition, and if material concerns of anti-competitive conduct arose, these should be sufficiently mitigated by conditions that were comprehensive, effective, monitorable and enforceable.
“We have made concern submissions and MTN’s scope of participation in the merger proceedings concerns three topics: the competitive effects of the proposed merger, market definition and potential remedies in the event of a conditional approval.
“We are of the view that the final approach taken by the Competition Tribunal may set a precedent on how other merger applications will be assessed which, depending on the outcome, may pose a challenge to future desirable consolidation in the market,” he continued.
“We believe that our participation in the merger proceedings will assist the Competition Tribunal in its adjudication of the proposed merger and establish a sustainable framework to govern such transactions in the future,” Molapisi concluded.