South Africa’s Competition Commission (CompCom) has given its unconditional approval to the acquisition of Cipherwave Home Connect, an internet service provider, by Afrihost, its peer company. The CompCom stated that the proposed transaction does not raise significant public interest concerns.
This acquisition takes place in a highly competitive fiber market, with companies targeting township and smaller markets known as secondary markets. Afrihost offers a range of internet-related services, including retail supply of internet access services for residential and business customers, voice-over-internet protocol services, and data hosting services.
Cipherwave Home Connect, on the other hand, provides both fiber-to-the-home and fiber-to-the-business services, including prepaid fiber internet.
The CompCom conducted an assessment and determined that the proposed transaction is unlikely to result in a substantial prevention or reduction of competition in the relevant markets. Furthermore, it concluded that the transaction does not give rise to significant public interest concerns.
This approval paves the way for Afrihost to proceed with the acquisition of Cipherwave Home Connect, allowing the companies to leverage their strengths and expand their offerings in the competitive internet service market.
The approval from the CompCom demonstrates the authorities’ confidence in the transaction and affirms their belief that it will not have a negative impact on competition or public interest.
Overall, this acquisition marks an important development in the South African internet service provider landscape, as Afrihost strengthens its position and expands its capabilities to serve a wider range of customers with quality internet services.