Competition Commission Clears Cell C’s Acquisition of CEC
In its assessment, the Commission concluded that the deal would not harm competition in the telecommunications market. “The proposed transaction is unlikely to substantially lessen or prevent competition in any market,” the Commission said in a statement.
The Competition Commission has recommended that the Competition Tribunal approve, without conditions, the proposed acquisition of Comm Equipment Company (Pty) Ltd (CEC ) by Cell C Ltd.
Cell C, the acquiring firm, operates in South Africa’s telecommunications sector, offering mobile services to businesses and consumers. Through its subsidiary, Cell C Service Provider Company (Pty) Ltd, the company retails products and services such as SIM cards and accessories to both prepaid and postpaid subscribers. Cell C is not controlled by any single shareholder, with its shareholding widely dispersed.
CEC, the target company, is a wholly owned subsidiary of The Prepaid Company (Pty) Ltd, which in turn is wholly owned by Blue Label Telecoms Ltd (BLT), a JSE-listed company with no controlling shareholder. CEC provides postpaid sales services, including contract renewals, marketing, administrative support, and back-office services for Cell C. It also sources and sells handsets to Cell C’s postpaid customers.
In its assessment, the Commission concluded that the deal would not harm competition in the telecommunications market. “The proposed transaction is unlikely to substantially lessen or prevent competition in any market,” the Commission said in a statement.
It further noted that the acquisition raises no public interest issues. “The transaction does not raise significant public interest concerns,” the Commission added.
The matter will now be considered by the Competition Tribunal for final approval
