Competition Tribunal examining CIVH purchase of Vumatel

Proceedings have begun at the Competition Tribunal’s inquiry into CIVH’s proposed takeover of Vumatel.

CIVH holds a large stake in Dark Fibre Africa (DFA), which builds and runs fibre infrastructure and then leases it to last-mile fibre providers such as Vumatel.

It currently owns 34.9% of Vumatel and has proposed to Vumatel shareholders that it purchase the remaining 65.1% of the company’s shares.

The Competition Tribunal is investigating the deal to attain control of Vumatel, following a complaint by Octotel.

Octotel is a fibre infrastructure provider which is prominent in Cape Town – and is indirectly owned by Remgro.

It claims that DFA is the largest backhaul provider in South Africa, meaning that it being owned by the same company as Vumatel would be a vertical competition concern.

Additionally, it said that since Remgro would own Vumatel while also indirectly owning Octotel, the deal brings up horizontal competition concerns.

CIVH’s portfolio would look as follows should the Vumatel deal be allowed.

CIVH

Now read: Telkom’s biggest threat in the South African fibre market

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Competition Tribunal examining CIVH purchase of Vumatel