MTN and Telkom will have to do some careful wrangling for the Competition Commission to approve any acquisition deal.
For MTN to get the Competition Commission’s approval to acquire Telkom, it must structure the deal extremely carefully.
The deal comprises R6 billion cash, a R3 billion top-up payment based on assumptions at the time of the transaction, and fibre assets worth R4.2 billion.The companies have assured Vumatel’s fibre network will remain open access. Vodacom’s entire fibre network will also immediately become open access.
A combined MTN-Telkom Mobile would hold more spectrum than any other operator in South Africa and give them a distinct advantage. “We have seen a change in the Competition Commissions investigations of late,” Rautenbach told MyBroadband.
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