- Vodacom's 790 million acquisition of a 30 stake in Maziv was rejected by the Competition Tribunal, hindering expansion plans.
- The deal aimed to merge Vumatel and Dark Fibre Africa to enhance Vodacom's position in South Africa's telecom infrastructure.
- CEO Shameel Joosub expressed disappointment but remains optimistic about exploring options for Vodacoms long-term growth and digital expansion in Africa.
Vodacom Group, the Johannesburg-based telecommunications giant led by South African executive Shameel Joosub, has encountered a significant setback in its expansion strategy after the Competition Tribunal rejected its acquisition of a 30 percent stake in Maziv .
The proposed 790.7 million investment aimed to merge Vumatel and Dark Fibre Africa into a single entity under the Maziv umbrella, but regulators expressed concerns over reduced competition and potential price increases, jeopardizing Vodacom's growth ambitions.
Vodacom's 790 million deal faces obstaclesThe R14 billion 790 million deal was initially announced in 2021 , with Vodacom planning to invest R6 billion 338.93 million in cash and contribute fibre assets valued at R4.2 billion 237.25 million for the stake in Maziv, which was created by Community Investment Ventures Holdings CIVH, a subsidiary of Remgro.
This merger aimed to consolidate the assets of Vumatel and Dark Fibre Africa to create a leading player in the countrys telecom infrastructure.
Despite the regulatory roadblock, Vodacom CEO Shameel Joosub remains optimistic about the companys long-term plans but expressed disappointment about the decision.
