MWEB-DiData merger deal gets approval

·11 Dec 2014

The Competition Commission has recommended to the Competition Tribunal that the merger between Dimension Data (DiData) and the three divisions of MWEB be approved, with conditions.

Internet Solutions, a division of Dimension Data, announced in September that it signed a transaction agreement to purchase three business divisions within MWEB Connect.

The sale includes the assets of the following businesses:

MWEB ISP core network assets;
MWEB Business;
Optinet.

MWEB Connect will retain its consumer ISP business. The MWEB WiFi business does not form part of this agreement.

A fee for the deal was not disclosed.

DiData operates through a variety of subsidiaries and divisions that specialise in information technology and communication services.

MWEB sells products and services in the categories including internet connectivity, hosting services, cloud services, security, VOIP and email services.

“There are public interest concerns arising from this proposed transaction. The Commission imposed a condition that no more than 35 employees of the merged entity should be retrenched as a result of the proposed transaction,” the Competition Commission said in a statement on Thursday (11 December).

Internet Solutions, founded in 1993, is a division of Dimension Data and provides ICT services to the corporate, SME, public sector and wholesale markets. Dimension Data is a member of the NTT Group.

The Commission also approved, without conditions, the merger between Main Street and DiData. The proposed transaction contemplates the establishment of Main Street that will be jointly controlled by DiData and Huntley.

The merging parties are active in the wholesaling of Wi-Fi and mobile GSM/3G connectivity solutions.