Vodacom granted takeover authorization in Zambia

The Zambia Competition Commission (ZCC) has granted Vodacom Gateway Mauritius, owned by Vodafone U.K., final authorization for the 100 percent takeover of Africonnect Zambia.

The takeover of the Zambian company by Vodacom strengthens the company's push for dominance in Africa’s Internet and mobile market.

The ZCC said it allowed the acquisition of Africonnect Zambia by Vodacom Gateway Mauritius because the takeover was not likely to lead to a situation that could have substantive adverse effects on competition in the provision of Internet or other information and communication technology services.

Last year, Vodafone paid more than US$2 billion to increase its stake in the Vodacom Group in order to consolidate its expansion plans in the African mobile and data market, which has become a battleground for international companies. Africonnect is the third-largest Zambian Internet service provider.

Vodafone’s acquisition of Africaconnect Zambia means that the Vodacom now has operations in Eastern, Southern and West Africa including Tanzania, Mozambique, Lesotho and the Democratic Republic of Congo (DRC). Vodafone owns a 65 percent controlling stake in Vodacom Group.