MWeb sale to IS gets regulatory nod

12 May 2017

Mergers, Acquisitions and Financial Results

The Competition Commission has recommended the approval of Internet Solutions’ (IS’s) acquisition of Internet service provider MWeb.The Competition Commission has recommended the approval of Internet Solutions’ (IS’s) acquisition of Internet service provider MWeb.

IS said in December 2017 that it would get into the retail ISP game with its acquisition of MWeb Connect from Naspers-owned MultiChoice for an undisclosed sum. The acquisition is being done through its parent company, Dimension Data.

The commission has now recommended to the Competition Tribunal that the deal be approved “subject to public interest conditions relating to employment”.

“The commission’s recommended conditions require that in the event that the merging parties proceed with any retrenchments, they must ensure that they follow the applicable Labour Relations Act processes,” it said in a statement.

“The commission found that the proposed transaction is unlikely to substantially prevent or lessen competition in any market.”

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Source: TechCentral