Vodacom has called off its proposed acquisition of Neotel, citing regulatory complexities.
Initially, the acquisition included taking over Neotel’s spectrum licences, but this was ruled and a subsequent, restructured agreement mooted whereby Neotel would offer roaming on its spectrum to all mobile operators, including Vodacom.
This was scuppered by the High Court, and the companies have now agreed to call off the acquisition.
The modified transaction contemplated Vodacom acquiring the majority of Neotel assets related to its fixed line business as a going concern, excluding its spectrum, ECN and ECNS licences.
The companies have now confirmed that the agreement between them has lapsed due to regulatory complexities in concluding the transaction as well as certain conditions not being fulfilled.
Vodacom SA states that it will continue to invest in the development of its own high-speed communication infrastructure.