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JSE
THEE
THEE - Competition Commission approves Vodacom/Vodafone merger
The Competition Commission
The Competition Commission has recommended the approval of the proposed
large merger between Vodafone Group Plc and the Vodacom Group (Pty) Ltd and
has referred the transaction to the Competition Tribunal for approval.
Currently, Vodacom is jointly controlled by Telkom SA (Pty) Ltd, which
holds a 50% shareholding in Vodacom, and Vodafone, which holds 50%.
In terms of the proposed transaction, Vodafone will acquire a further
15% of the issued share capital in Vodacom from Telkom. Vodacom will be
listed on the JSE and Telkom will unbundle its remaining 35% shares in
Vodacom to its own shareholders. On completion of the proposed
transaction, Vodafone will hold 65% of the issued share capital of
Vodacom. The remaining shares of Vodacom will be publicly held. Vodafone
will exercise sole control over Vodacom post-merger.
During its investigation of the proposed merger the Commission
established that Vodafone does not compete with Vodacom in any of the
product markets in South Africa. The Commission is also of the view that
the vertical integration between the parties is unlikely to result in
any substantial prevention or lessening of competition.
The Commission contacted the merging parties` competitors and customers
to solicit their views regarding the proposed transaction. No
significant competition concerns were raised by either the customers or
competitors of the merging parties. The Commission`s investigation also
revealed that there are other credible players in the relevant markets
in which the merging parties are involved.
The Commission also concluded that there were no significant public
interest issues that warranted a prohibition or conditional approval of
this transaction.
The Tribunal will hold public hearings into the matter on the 25th of
February at 10:00.
ENDS
Prepared by: FD Beachhead
Jennifer Cohen 011 214 2401/ 082 468 6469/ jennifer.cohen@fd.com
Dani Cohen 021 487 9021 / 082 897 0443 dani.cohen@fd.com
Senzi Dlamini 011 214 2420 / 073 494 0030 senzi.dlamini@fd.com
On behalf of: The Competition Commission
Further info:
Nandi Mokoena
Manager of Strategy and Stakeholder Relations, Competition Commission
012 394 3286 / 082 399 1328 / nandisilem@compcom.co.za
Date: 16/02/2009 16:48:24 Produced by the JSE SENS Department.
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