ICCC assesses bmobile, Telikom merger plans as an ‘internal restructure’

The National Business

THE proposed merger of bmobile into Telikom can now go ahead after the Independent Consumer and Competition Commission (ICCC) assessed it as an internal restructure.
ICCC in a statement yesterday noted that on Aug 11, 2021, Kumul Telikom Holdings Ltd (KTHL) and Telikom Ltd jointly lodged a clearance application seeking clearance on the proposed merger of bmobile into Telikom.
“During the process of screening the clearance application, ICCC considered that the proposed amalgamation did not meet either of the notification thresholds under the Independent Consumer and Competition Commission Act 2002,” the commission said.
“The ICCC also noted that the proposed amalgamation is an internal restructure.
“On Sept 6, the ICCC informed the parties that it will not further assess and determine the application.”
ICCC chief executive officer Paulus Ain, however said the commission’s current position on the proposed merger was based on information submitted by the parties and reserved its right to revisit the matter if the need rise.
Meanwhile, according to ICCC, in an acquisition process, the proposed acquirer must apply to the commission before completing the acquisition for a clearance from the commission to allow the acquisition to proceed.
As a first step, the ICCC must consider whether or not the acquisition would meet any of the two mandatory notification thresholds.
Section 81 (1) (a) and (b) of the ICCC Act states that a person who proposes to acquire assets of a business or shares shall give the commission a notice seeking clearance for the acquisition if:

  • THE transaction value of the proposed acquisition exceeded K50million; or
  • THE proposed transaction is likely or would be likely to result in a market share increase of 50 per cent or more of the person who is acquiring.

Proposed acquirers were encouraged to apply for clearance where the proposed acquisition may have some anticompetitive effects, even if they think it unlikely that the anticompetitive effects would be substantial, and where the public benefits of the acquisition were not relevant.