Vodacom-Neotel deal approved

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 which 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 roll-out of broadband infrastructure and services, an Icasa spokesperson told Bloomberg.

“We will work with Icasa to finalise the conditions of the approval,” Vodacom said in a statement.

In May, Cell C’s CEO Jose Dos Santos said 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,” said Dos Santos.

“I have an entire legal team on this….we will do whatever it takes, legally.”

According to Cell C, a successful deal would “unfairly” strengthen Vodacom’s ability to compete, should the group gain control of Neotel’s spectrum.

Republished with permission from BusinessTech.

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Vodacom-Neotel deal approved