Tribunal approves the acquisition of three divisions of Mweb by Dimension Data
The Competition Tribunal conditionally approved the large merger involving the acquisition of the Mweb Business, Optinet Network and Optinet Services divisions of Mweb by Dimension Data.
Dimension Data is an information and communications technology services and solutions provider that provides IP-based connectivity, communication, data centre and carrier services to large corporate customers in South Africa and in various countries around the world.
The Optinet Network and Optinet Services business divisions of Mweb provide various information technology services to firms in the Naspers group and affiliates, whereas Mweb Business provides a variety of information technology products and services to mainly SMME customers.
The Tribunal found that the transaction was unlikely to substantially prevent or lessen competition in any relevant markets.
The Tribunal, however, imposed conditions in terms of which the merger parties must ensure that the number of retrenchments does not exceed 35 as a result of the merger. Such retrenchments may only be effected within 18 months from the effective date of the transaction.