https://www.engineeringnews.co.za
Africa|Business|Infrastructure|Services|Infrastructure
Africa|Business|Infrastructure|Services|Infrastructure
africa|business|infrastructure|services|infrastructure

Competition Tribunal grants MTN, Rain intervention rights in pending Vodacom, BVI merger proceedings

17th November 2023

By: Creamer Media Reporter

     

Font size: - +

The Competition Tribunal has granted MTN and Rain leave to intervene in the pending merger hearing involving Vodacom and Business Venture Investments (BVI).

In August 2023, the Competition Commission recommended to the Tribunal that the proposed transaction should be prohibited on the grounds that it raises both competition and public interest-related concerns and that the proposed conditions tendered by the merging parties do not address these concerns.

Both MTN and Rain participated in the commission's investigation of the proposed merger and raised concerns at the time, as the operators are competitors and customers of the merging parties, with Rain also being a supplier.

Both subsequently applied to the Competition Tribunal for participation rights in the pending merger proceedings, for which a hearing was held on November 10, where the Tribunal heard and subsequently considered submissions by MTN, Rain and the merging parties.

The Competition Tribunal, in a statement issued on Friday, said that it granted MTN leave to intervene as a participant in the merger proceedings in respect of whether or not the proposed merger was likely to substantially prevent or lessen competition, including by assessing the factors set out in section 12A(2)(b) to (f) of the Competition Act; and the conditions proposed by the merging parties and/or to be considered by the Tribunal in relation to any approval of the proposed merger.

The Tribunal’s order in relation to Rain grants the mobile communications company leave to intervene as a participant in the merger proceedings in relation to whether or not the proposed merger is likely to substantially prevent or lessen competition in relation to the following theories of harm, as well as the effect of the proposed merger on Rain’s ability to compete in respect of retail Internet services and mobile services as a result of portfolio effects and bundling.

This is in addition to the risk and potential effects of input foreclosure, reduction in competition in wholesale markets, including metropolitan fibre backhaul used for mobile networks and open access to fibre infrastructure and services, as well as information sharing, and whether the proposed merger should be approved, with or without conditions, or prohibited, including whether any conditions proposed by the merging parties to the Tribunal adequately address any anti-competitive consequences of the proposed merger and/or conditions to be considered by the Tribunal in relation to any approval of the proposed merger.

According to the Competition Commission, the proposed Vodacom and BVI merger would combine South Africa’s largest fibre infrastructure player and its largest mobile operator.

Edited by Creamer Media Reporter

Comments

Latest News

Implats CEO Nico Muller
Implats expecting phased reduction in group output
29th February 2024 By: Martin Creamer

Showroom

Weir Minerals Africa and Middle East
Weir Minerals Africa and Middle East

Weir Minerals Europe, Middle East and Africa is a global supplier of excellent minerals solutions, including pumps, valves, hydrocyclones,...

VISIT SHOWROOM 
SABAT
SABAT

From batteries for boats and jet skis, to batteries for cars and quad bikes, SABAT Batteries has positioned itself as the lifestyle battery of...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Magazine video image
Magazine round up | 01 March 2024
1st March 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.267 0.315s - 139pq - 2rq
Subscribe Now