Axian Telecom’s Proposed Wananchi Group Acquisition Under COMESA Review

The COMESA Competition Commission has initiated an inquiry following the proposed acquisition of Wananchi Group (Holdings) Limited by Axian Telecom Fibre Limited. The acquisition, set to transfer 99.63% of Wananchi’s shares to Axian, aims to enhance Axian’s footprint across East Africa, leveraging existing digital markets and optimizing the merging parties’ assets. This transaction will also provide Wananchi’s current investors an exit while enabling access to fresh capital for growth. The Commission will evaluate whether the merger would reduce competition or conflict with public interest in the Common Market, calling for written representations from stakeholders by October 3, 2024.

The Acquiring Group, led by Axian Telecom Limited (ATL), operates in several Common Market countries, including Comoros, DRC, Kenya, Madagascar, Mauritius, and Uganda. The Target Group, controlled by Wananchi, has active subsidiaries across Kenya, Malawi, Mauritius, and Uganda. However, before the transaction, Wananchi will divest its majority shareholding in iSat Africa Ltd, which will not be part of this deal. The outcome of the inquiry, as per the COMESA Competition Regulations, will hinge on the impact on market competition and public interest.