Zambia’s Competition and Consumer Protection Commission approves fibre optic joint venture

Mergers, Acquisitions and Financial Results

Zambia’s Competition and Consumer Protection Commission (CCPC) has issued an unconditional final authorisation for the creation of a joint venture between Copperbelt Energy Corporation (CEC) and Liquid Telecommunications Holdings Limited of Mauritius. According to the Zambia Times, under the terms of the approval, a new company – CEC Liquid Telecommunications – will be created, with the joint venture expected to be a 50/50 split between the two partner companies. Both CEC and Liquid are expected to invest a combined USD30 million in the venture.

Despite CEC already being operational in the fibre-optic sector, and holding a market share of around 40%, the CCPC said that it did not envisage the deal raising any competition concerns, with the watchdog’s director of consumer and public relations Brian Lingela noting: ‘The board held that no market player was likely to be removed from the market as a result of the joint venture, as Liquid Telecoms had no known presence in Zambia.’