Vodacom-Neotel deal gets approval
The R7 billion deal between Vodacom and Neotel has been approved by South Africa’s communications regulator, Icasa, according to Bloomberg.
In May 2014, Vodacom and Neotel announced that the two companies had entered into a deal that would see Vodacom acquire 100% of Neotel.
The takeover will be subject to compliance with a local ownership law and adherence to terms of the rollout of broadband infrastructure and services, an Icsa spokesperson told Bloomberg.
“We will work with ICASA to finalize the conditions of the approval,” Vodacom said in a statement.
In May, rival operator, Cell C’s CEO Jose Dos Santos said that he would do whatever it takes to block the acquisition.
“We will keep them in court for as long as the legal system allows it, which is two years,” Dos Santos said.
“I have an entire legal team on this….we will do whatever it takes, legally,” Dos Santos said.
According to Cell C, a successful deal would “unfairly” strengthen Vodacom’s ability to compete, should the group gain control of Neotel’s spectrum.
More on Vodacom and Neotel
Vodacom disappointed by Neotel wait
We’ll do whatever it takes to block Vodacom/Neotel deal: Cell C
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