The Common Market for Eastern and Southern Africa (Comesa) Competition Commission (CCC) has fined Malawi Towers and two other firms USD 102,000 for failure to notify it of their proposed acquisition in time, The Nation reported. The other two firms are Helios Towers and Madagascar Towers. CCC chairperson Brian Lingela and commissioner Ellen Ruparanganda said the parties failed to inform it of Helios Towers' intent to acquire shares in Malawi Towers and Madagascar Towers.
Malawi Towers is incorporated in Malawi and is a subsidiary of Airtel Malawi and owns telecommunications infrastructure assets that are mainly used by Airtel Malawi to provide services to its own end-customers in Malawi. Article 24 (1) of the Comesa Competition Regulations of 2004 requires a party to a notifiable merger to inform the commission in writing as soon as it is practicable, but in no event later than 30 days of the decision to merge.
The share sale and purchase agreement for the proposed transaction was signed on 23 March but the proposed merger was only communicated to the commission on 02 July and not on 22 April in accordance with the regulations. Commission registrar Meti Disasa said the fine was the first of its kind for breach of the regulations and cautioned those operating in the market to comply with the rules, especially with respect to anti-competitive conduct.
Airtel Africa sold its tower units in Madagascar and Malawi to Helios Towers plc for USD 108 million and signed separate pacts with the UK telecom infrastructure firm. The funds were be used to reduce Airtel Group's debt and invest in network and sales infrastructure in the respective operating countries.
