TowerCo’s Acquisition of Swiftnet Approved with Conditions by Competition Tribunal

The Competition Tribunal has given its approval for TowerCo’s proposed acquisition of Swiftnet, subject to certain conditions. This significant transaction marks a strategic move in the telecommunications infrastructure sector.
TowerCo, established specifically for this transaction, is under the joint control of the Actis Ohio Fund and Royal Bafokeng Infrastructure Investments (Pty) Ltd. The Actis Ohio Fund is a South African partnership managed by Actis Ohio SA GP (Pty) Ltd, ultimately owned by Actis LLP, a global investor with a diverse portfolio that includes energy infrastructure, digital infrastructure, real estate, and private equity. In South Africa, the Actis Group has investments in sectors such as food retail, education, fibre, and internet services. Royal Bafokeng Infrastructure, controlled by Royal Bafokeng Holdings (Pty) Ltd, an investment holding company, has stakes in various sectors including infrastructure, property, financial services, telecommunications, pharmaceuticals, resources, and industrial sectors. Together, these entities form the Acquiring Group.
The target firm, Swiftnet, is wholly owned by Telkom SA SOC Limited, a state-owned company listed on the Johannesburg Stock Exchange. Swiftnet’s business primarily involves leasing space on its masts and towers to mobile network operators, facilitating connectivity for subscribers and wireless network operations. It also offers in-building wireless solutions, enhancing mobile network connectivity within various buildings and public infrastructures across 28 locations in South Africa.
The Commission assessed the potential impact of the transaction and concluded that it is unlikely to substantially lessen or prevent competition in any market. To address public interest concerns, the merger parties have committed to procurement practices that support small and medium enterprises (SMEs) and firms owned by historically disadvantaged persons (HDPs) for five years following the merger’s implementation.
This approval with conditions ensures that the transaction supports broader economic inclusion and sustains competition in the telecommunications infrastructure sector, ultimately benefiting the South African market.