Vumatel has secured approval from South Africa’s Competition Commission to proceed with its acquisition of internet service provider Herotel. While the transaction was cleared with conditions, the competition watchdog concluded that it posed no major public interest concerns. This move follows Vumatel’s parent company, Community Investment Ventures Holdings (CIVH), previously obtaining a 45% non-controlling stake in Herotel in 2022. The latest approval now allows Vumatel to assume full control. Herotel, which operates across over 400 towns and cities, has connected more than 150,000 homes and businesses through fibre and fixed wireless services, strengthening its presence in South Africa’s internet market.
As part of the agreement, Vumatel committed to maintaining pre-existing open-access practices to ensure fair competition in the industry. The company also pledged to continue offering services on clear and non-discriminatory terms. In addition, Vumatel has made public interest commitments to expand fibre-to-the-home (FTTH) services in low-income areas, further advancing internet accessibility in underserved communities. This assurance was crucial in addressing potential competition concerns raised by regulators during the review process.
The approval comes as a positive outcome for CIVH, now rebranded as Maziv, which has been expanding its telecommunications footprint. Maziv’s portfolio includes Vumatel, SADV, Rise Telecoms, and BritelinkMCT. This development follows a recent setback for the group when its proposed merger with Vodacom’s fibre business was blocked by the Competition Tribunal. That rejected deal, valued at approximately R13 billion, would have given Vodacom a 30% stake in Maziv, with an option to increase it to 40%. Both parties have lodged provisional appeals against the ruling. With the Herotel acquisition now secured, Vumatel is poised to expand its influence in South Africa’s growing fibre market, reinforcing its position as a key player in the country’s digital infrastructure landscape.