Vodafone-Vodacom merger approved

17 Feb 2009

South Africa’s Competition Commission has recommended the approval of the proposed merger between the UK mobile group Vodafone and its 50%-owned South African subsidiary Vodacom. Under the terms of the transaction Vodafone will acquire an additional 15% stake in Vodacom from its partner in the venture, Telkom South Africa. Vodacom shares will then be listed on the Johannesburg Stock Exchange and Telkom will dispose of its remaining 35% interest among its own shareholders. ‘The vertical integration between the parties is unlikely to result in any substantial prevention or lessening of competition,’ the commission said. The deal will now go before the Competition Tribunal later this month for final approval.

South Africa, Vodacom Group, Vodafone Group