In South Africa, the Competition Appeal Court has decided to hear arguments challenging a Competition Tribunal ruling that blocked Vodacom’s bid to acquire a controlling stake of 30-40% in fibre operator Maziv. The hearing is scheduled for July 22-24, 2025.
This development comes despite the Competition Tribunal’s failure to provide detailed reasoning for its decision to prohibit the multi-billion rand merger, even after the deadline for issuing such explanations has passed.
In a statement to investors, Vodacom Group highlighted that both parties are still awaiting the Tribunal’s rationale for blocking the merger, which is crucial for moving forward with the appeal process.
Adding to the uncertainty, the involved parties have already pushed back the completion deadline for the deal multiple times and have agreed to extend it again, this time to April 30, 2025.
These delays have created uncertainty, significantly reducing investments in new fibre infrastructure. With both the merging parties unsure where to allocate capital, the wider market has adopted a “wait and see” approach.
During a Remgro results call last September—Remgro holds a 57% stake in Maziv’s parent company, CIVH—CEO Jannie Durand indicated that the hold-up from competition authorities has resulted in a loss of R3 billion to R4 billion in potential investments for fibre deployment. Durand characterized this situation as an “opportunity cost”, affecting not only CIVH but the country as a whole.
The Competition Tribunal cited the intricate nature of the Vodacom-Maziv transaction as a key reason for the lengthy process, noting that it has been over three years since the deal was announced. The Tribunal stated that the complexity of mergers that present significant competition and public interest concerns requires more time for adjudication. It is tasked with balancing the interests of workers, owners, and consumers, as mandated by the Competition Act.
Compounding the situation is that the Minister of Trade, Industry, and Competition, Parks Tau, who oversees South Africa’s competition regulators, announced last November that he would appeal the Tribunal’s decision to block the deal. Having participated in the Tribunal’s proceedings, Tau had previously expressed his support for the merger on public interest grounds. In a media statement at the time of the blockage, he noted that the parties involved had committed to substantial public interest conditions to enhance fibre and mobile connectivity investments in South Africa, aligning with national priorities for industrialization and job creation.
