Vodacom: aggregate Maziv transaction price is ZAR12.2B

Vodacom: aggregate Maziv transaction price is ZAR12.2B

In a significant move for South Africa's telecommunications sector, the Competition Tribunal has approved Vodacom Group Limited's acquisition of a 30-40% stake in fibre network operator Maziv. The decision, announced on July 8, reverses an earlier ruling from October 2024 that had blocked the transaction, citing concerns over potential competition issues and Vodacom's board-level influence [1].

The aggregate transaction price for the acquisition is valued at ZAR12.2 billion. The approval comes with several conditions, including limitations on Vodacom’s access to competitively sensitive information, non-discriminatory pricing obligations, and enforceable commitments to infrastructure investment and job creation [1].

Vodacom has pledged to invest ZAR725 million in its new asset over the next five years, as well as connecting at least 1 million new homes through its fibre network. Trade, Industry and Competition Minister Parks Tau welcomed the decision, stating that it will facilitate South Africa's participation in the global economy through emerging sectors, including generative artificial intelligence [1].

The approval of this deal is expected to enhance access to affordable internet for underserved communities, thereby enabling easier participation in economic activity, particularly for young people. The new ruling is subject to behavioral and investment conditions that aim to ensure the deal does not compromise competition in the fibre sector [1].

References:
[1] https://www.marketscreener.com/quote/stock/VODACOM-GROUP-LIMITED-5314777/news/South-Africa-s-Competition-Tribunal-greenlights-Vodacom-s-acquisition-of-40-in-fibre-firm-Maziv-50497285/