According to a report via TelecomPaper, Vodacom has begun talks with South African operator Neotel regarding revising the structure of the proposed R7-billion takeover.
The report additionally revealed that Vodacom had asked that a Competition Tribunal hearing relating to the deal be postponed. According to an article by mybroadband.co.za the request was accepted.
According to the report via iol.co.za, “The outcome of these discussions will directly impact the extent of the approval being sought from the Competition Tribunal and the scope” of the hearing, the Johannesburg-based company said in a statement. The review was scheduled to begin in Pretoria.
The iol.co.za report stated that Vodacom was granted provisional approval by South Africa’s antitrust and communications regulators earlier this year to buy Neotel, expanding its Internet offering.
Conditions included the extension of broadband to rural areas and a pledge not to cut Neotel jobs. Since the deal was revealed it has been opposed by competitors including MTN Group, which said the acquisition would give Vodacom dominance of South Africa’s high-speed Internet market.
According to Fin 24, intervening parties expecting to attend the hearing also include: Telkom, Cell C, MTN, Icasa and economic development and telecommunications ministers.
Editor: Darryl Linington
