Altech has decided not to oppose MTN's proposed acquisition of Verizone South Africa, and today withdrew as an intervening party in the merger proceedings currently before the Competition Tribunal.
Last year, Altech was granted permission to question MTN's takeover of Verizon as it felt the merger would give MTN a great level of control over vital services to the telecommunications industry.
MTN has acted to dispel those concerns and Altech has decided to withdraw its opposition.
"MTN has given a number of general undertakings in respect of the way in which it proposes to conduct the Verizon business," a statement from Altech reads. "These undertakings have given Altech satisfactory comfort to address its competition law concerns."
MTn announced its R1,4-billion bid to acquire Verizon in June last year.
The transaction is in line with MTN's strategy to provide integrated communications solutions in all of its markets and follows similar acquisitions by MTN subsidiaries in Nigeria, Cameroon, Cyprus and Cote d'Ivoire. The transaction also supports MTN's strong customer focus and commitment to providing greater choice and will help position MTN to offer a broad range of communication offerings beyond its mobile services.
The acquisition of Verizon Business South Africa will bolster the scale and product offering of MTN's existing South Africa-based ISP, MTN Network Solutions, while strengthening its regional presence. MTN will work closely with Verizon Business to continue to serve global customers with operations in the region and also to identify other opportunities for regional cooperation.