Vodacom abandons takeover of Neotel

News Wireless South Africa 1 MRT 2016
Vodacom abandons takeover of Neotel
South Africa mobile operator Vodacom has abandoned its proposed acquisition of the majority of Neotel's assets after the companies were unable to obtain regulatory approval for the deal. The takeover of Neotel, controlled by India-based Tata Communications, was first announced in May 2014, as part of Vodacom's efforts to expand in the fixed market and acquire fibre and spectrum assets. In December 2015 the companies said they had scaled back the deal, dropping Neotel's spectrum and offering competition concessions due to regulatory concerns. 

Since then they refiled for regulatory clearance but were unable to complete the deal and meet all the necessary conditions before the negotiating deadline lapsed. Vodacom Group CEO Shameel Joosub said it was disappointing that "we have reached this conclusion despite all our efforts to find a way to deal with the complexities of the restructured transaction. Our ambition to increase the rollout of fibre-based broadband services to customers remains. We will continue to look for spectrum opportunities, as well as opportunities to accelerate our fixed line business." Tata said in a statement that it remains committed to its investment in Neotel and its customers in the South African market. 

Categories:

Mobile

Companies:

NeoTel,  Vodacom

Countries:

South Africa

Tags:

Regulations, M&A buyouts & divestments

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