Competition Tribunal of South Africa approved Vumatel acquisition by Remgro owns Community Investment Ventures Holdings (CIVH).
After this acquisition CIVH will have sole control Vumatel in addition to the Dark Fiber Africa (DFA), which it already has a controlling stake.
DFA builds and launches fiber infrastructure, and then leases it to the last mile fiber provider such as Vumatel. In turn, Vumatel provides access to fiber providers that offer internet via this infrastructure to the public.
Competition Tribunal has initiated an investigation of the deal in April 2019 after Octotel complaints in competiting supplier of fiber infrastructure with the & # 39 is visible in Cape Town and indirectly owned by Remgro.
Octotel argued that the DFA with the & # 39; is the largest supplier of the transport network in South Africa, which means that time owned by the same company as Vumatel be vertical competition concerns.
CIVH also controls the SA Digital Villages (SADV), fiber-to-home and Internet service provider, specializing in the installation and maintenance of fiber optic networks in residential areas.
Challenges and conditions
In a statement on the approval of the acquisition Vumatel Tribunal has listed a number of problems and conditions of the merger.
Competition Commission raised vertical competition problems while it is estimated the merger, since it was found that the DFA is the largest supplier of the transport network, estimated on a regional basis.
He also expressed concern about the horizontal competition, due to the indirect control of Remgro competing suppliers Octotel fiber.
Octotel relies on DFA, to ensure its transport network services in the Western Cape, and expressed concern about the potential for favored Vumatel CIVH DFA and the expense of competitors.
Octotel subsequently been allowed to make representations to the Tribunal as a "side of things," and implored the organization to prohibit the acquisition of Vumatel CIVH.
The transaction has been approved, although this decision comes with a number of conditions attached to the saved enter into force competition in the fiber infrastructure market.
"The Tribunal approved the deal on terms that require the Merged Entity retains the open service model to provide access to some of its services after the merger, as well as increased transparency mechanisms and a commitment not to discriminate against its customers that compete with Vumatel,» said the organization.
"The condition also includes two public interest obligations, one of which is & # 39 is confidential because of the sensitivity of the business."
"Another involves About & # 39; combines hand to provide free services to the disclosed fiber state and private schools, its network bypass," the Tribunal said.
acquiisition of conditions will apply for 10 years from the date of the merger.
CIVH portfolio would look like this after the acquisition Vumatel company.
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