Tribunal to decide on internet service providers merger

File: Dimension Data division, Internet Solutions, announced last year that it had entered into an agreement to acquire internet service provider, MWeb, for an undisclosed amount. Photo: eNCA

JOHANNESBURG – The Competition Commission on Tuesday recommended to the Competition Tribunal that the proposed large merger whereby Dimension Data intends to acquire MWeb Internet Service Provider (MWeb ISP) be approved subject to public interest conditions relating to employment.

This comes after Dimension Data division, Internet Solutions, announced last year that it had entered into an agreement to acquire internet service provider, MWeb, for an undisclosed amount.

MWeb ISP is owned by MultiChoice South Africa, a subsidiary of JSE-listed Naspers.

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The business comprises of the internet access and ancillary services business of MWeb. In addition, MWeb ISP offers retail services to consumers, including small office or home office.

Discussions between the parties have been taking place since 2013.

In South Africa, the Dimension Data Group operates through a variety of subsidiaries and divisions that specialise in IT and communications services. It provides solutions that help clients plan, build, support and manage their IT and communications infrastructures.

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.

The Commission said it found that the proposed transaction was unlikely to substantially prevent or lessen competition in any market.

African News Agency

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