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Executives pour cold water on MWEB, IS merger rumours

20 Dec 2013

According to widespread South African media reports, technology firm Dimension Data and media conglomerate Naspers have staged talks regarding a potential merger between their respective broadband units, MWEB and Internet Solutions (IS). Despite denials from executives at both companies, it has been suggested that a deal is in the pipeline that will see Naspers take a 20% stake in the joint venture.

According to TeleGeography’s GlobalComms Database, MWEB is a one of South Africa’s largest retail broadband providers, with a 25.2% market share at 30 September 2013, while IS is a major player in the wholesale markets, suggesting the possibility of substantial operational synergies.

South Africa, Dimension Data, Internet Solutions (South Africa), MWEB (South Africa)

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