Vodacom-Neotel deal collapses

Vodacom has announced that it will no longer buy Neotel.

By - March 1, 2016 Share on LinkedIn
Neotel Vodacom

Vodacom has announced that it will no longer buy Neotel, due to regulatory complexities and certain conditions not being fulfilled.

The cancellation of the deal comes after the High Court in Pretoria ruled that Vodacom would not be able to take control of licences owned by Neotel as part of the companies’ planned R7-billion merger.

Before the ruling, the two companies had announced a modified deal that would see Vodacom acquire all Neotel’s assets – but not its licences.

“Shareholders are advised that Vodacom South Africa will continue to invest in the development of its own high-speed communication infrastructure to stimulate greater competition in the fixed telecommunications sector and support both its business services offerings and its consumer business,” said Vodacom.

Vodacom CEO disappointed

“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 roll-out 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.”

More on Vodacom-Neotel deal

Vodacom cannot take Neotel’s licences: High Court

Vodacom drops plans to take Neotel’s spectrum

Share your thoughts

Join the conversation

Connect with Us



Would you buy a Mercedes-Benz bakkie?

View Results

Loading ... Loading ...

More News

Telkom testing migration of mobile Internet traffic to Telkom Internet

Telkom logo light

Telkom is investigating the migration of Internet traffic from the mobile network to the Telkom Internet network.

Department of Telecommunications’ progress in connecting schools and government institutions – Zero

Siyabonga Cwele at SATNAC 2015

“No targets relating to the national broadband plan have been met as the tender for connecting government institutions and schools has not been awarded as yet,” said the DTPS.

Eskom’s guarantees worry Treasury

Eskom logo light

Treasury highlighted increasing guarantees for state-owned enterprises as a “source of vulnerability” on the fiscus that requires close attention.

The best Internet browser – Chrome vs Edge vs Firefox

Web browsers Chrome Firefox Safari Edge Opera

VentureBeat has published its latest Internet browser “benchmark battle”, testing how the big browsers perform in a series of tests.

Free MyBroadband Newsletter