Vodacom-Neotel deal falls through

Vodacom has announced that its deal to acquire fixed telco group Neotel has fallen through.

In a voluntary update on the deal, the mobile operator said that a restructured agreement between the parties could no longer progressed, after it missed its deadline to finalise it.

The group says it ran into regularity troubles as well as “certain conditions” being unfilled in the agreement.

Vodacom originally agreed to buy Neotel from Tata Communications in May 2014. The deal was slowed down by competition inquiries, while Telkom and MTN appealed against the merger.

The group subsequently restructured its deal, where it would acquire all of Neotel’s assets related to its fixed line business – excluding spectrum licences – and Neotel would then offer roaming agreements to all South African operators, including Vodacom

“It is disappointing that we have reached this conclusion despite all our efforts to find a way to deal with the complexities of the restructured transaction,” said Vodacom CEO, Shameel Joosub.

“Our ambition to increase the rollout of fibre-based broadband services to customers remains. We will continue to look for spectrum opportunities, as well as opportunities to accelerate our fixed line business,” he said.

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Vodacom-Neotel deal falls through