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The owner of Vumatel, SA's largest fibre-to-the-home operator, says its proposed merger with Vodacom - which the Competition Commission blocked - could bring fibre to one million new households in lower-income areas, creating 10 000 jobs.
This week, the commission recommended that the deal be prohibited, saying it would lessen competition.
The deal, which has been in the works since 2021, would see Vodacom buy a large stake in Maziv, the company that owns Vumatel and Dark Fibre Africa (DFA). DFA provides fibre services in and between SA's towns and cities.
Maziv is owned by Community Investment Ventures Holdings (CIVH), which falls under JSE-listed investment holding company Remgro.
After the commission recommended on Tuesday that the deal be blocked, Maziv said it would seek to have the merger approved by the Competition Tribunal. The tribunal can overturn recommendations made by the commission for some mergers.
"The transaction will be hugely beneficial to the market in that Vodacom fibre assets will, as a result of the transaction, become commercially available on an open access, transparent and non-discriminatory basis," said Maziv.
Vodacom said its promised investment of more than R10 billion would enable it to extend fibre infrastructure to one million new homes in lower-income areas and create 10 000 new jobs.
Maziv said the deal would also result in the establishment of a R300-million fund to grow small- to medium-sized businesses.
Meanwhile, Vodacom said it would showcase the "strong public interest and pro-competitive advantages" that the deal would have on the fibre market before the tribunal.
A date has yet been set for the hearing of the matter.
