The Competition Tribunal on Tuesday dismissed with costs the application by the Huge Group (HUG) to intervene and participate in the merger proceedings between MTN and iTalk Cellular. <\/p>\n
The Competition Commission had referred the merger to the Tribunal last month recommending that it approve this merger without conditions. <\/p>\n
In terms of the proposed transaction MTN, an existing shareholder, intends to acquire the remainder of the shares (59%) in iTalk by exercising its pre-emptive right according to the shareholder’s agreement. <\/p>\n
Huge opposed the merger because it alleged that MTN will use its control of iTalk as a tool to diminish competition in the service provider market and restrict the ability of service providers to spark competition in the upstream market for mobile voice telephony products and services. <\/p>\n
In particular Huge was concerned that MTN would use its control of iTalk to eliminate the discounting arrangement that is currently secured through the service provider agreement between MTN and iTalk. <\/p>\n
The merger hearing will commence on January 6 2009.<\/p>\n