by TINTSWALO BALOYI
JOHANNESBURG, (CAJ News) – MTN South Africa explains it is not opposing the merger or supporting a prohibition of the proposed Vodacom- Maziv merger.
“Where there is market consolidation, scrutiny is required to ensure that there is no substantial harm to competition. If material concerns of anti-competitive conduct arise, these should be sufficiently mitigated by conditions that are comprehensive, effective, monitorable, and enforceable,” said MTN Chief Executive Officer, Charles Molapisi.
The company stated it believed the investment in South Africa’s fibre network infrastructure is positive; and the consolidation of the industry was an inevitable and even a desirable feature of the national and international landscape.
It confirmed it was participating in the Competition Tribunal’s merger proceedings in the Vodacom and Maziv transaction.
During its investigation of the proposed merger, the Tribunal contacted MTN to request information and solicit its views on the proposed merger in line with standard practice.
MTN said it made submissions and its scope of participation in the merger proceedings concerns three topics, namely the competitive effects of the proposed merger, market definition and potential remedies in the event of a conditional approval.
MTN is of the view that the final approach taken by the Competition Tribunal might set a precedent on how other merger applications will be assessed which, depending on the outcome, may pose a challenge to future desirable consolidation in the market.
“We believe that our participation in the merger proceedings will assist the Competition Tribunal in its adjudication of the proposed merger and establish a sustainable framework to govern such transactions in the future”, Molapisi concluded.
– CAJ News