THE Competition Tribunal has approved the merger between MTN and I-Talk Cellular after a long battle by some interested parties to discourage the deal. <\/p>\n
The tribunal heard statements from interested parties yesterday in the final competition hearing for the R511-million acquisition of mobile service reseller I-Talk Cellular, where MTN received full support from the Competition Commission.<\/p>\n
MTN voiced its desire to purchase the remaining 59percent of the company last year (MTN owns 41percent). Huge Telecoms also made a bid for the company.<\/p>\n
But MTN had pre-emptive rights to purchase the KwaZulu-Natal- based reseller.<\/p>\n
When the commission assessed the merger late last year, Huge tried to convince the authority that the deal would diminish competition in the industry. <\/p>\n
But Huge changed its tune yesterday when making its statements to the tribunal.<\/p>\n
James Herbst, Huge Group chief executive, said: “Huge no longer has any commercial interest in I-Talk. Without a shadow of a doubt, there is no lessening in the mobile communication landscape as a result of this merger. It would be minuscule,” Herbst said.<\/p>\n
Though Huge no longer has commercial interest in I-Talk, it still opposes a merger with MTN.<\/p>\n
Herbst’s argument was that allowing a different company other than MTN to purchase I-Talk would increase competition in the market.<\/p>\n
“We would have partnered with a micro-lender or a micro-lender could have acquired I-Talk and advanced contracts to lower LSM customers at a much lower rate than what is currently available.” <\/p>\n
Thabelo Masithulela, mergers and acquisition analyst at the commission said: “We are still of the view that the merger should be approved.”<\/p>\n