The Competition Tribunal on Wednesday unconditionally approved the merger between cellphone companies Vodacom and Vodafone.
In terms of the transaction, Vodafone will acquire a further 15% of the issued sale capital in Vodacom from Telkom and Telkom will unbundle its remaining 35% shares in Vodacom to its own shareholders, which are members of the public.
Currently, Vodafone and Telkom hold 50% each, of the issued share capital in Vodacom. During the Competition Commission’s investigation the Communications Workers Union (CWU) raised concerns that the merger would have an effect on workers and weaken the company.
The CWU opposed the merger and made oral submissions at the hearing. — I-Net Bridge