COMPANY COMMENT: Cell C, Net1 and Blue Label may all benefit
The planned tie-up looks like a positive development for all concerned. Except for one thing
The proposed transaction involving Cell C, Blue Label and Net1 seems like a great opportunity for the three groups to bulk up and, in Cell C’s case, trim back on debt. It will provide Blue Label and Net1 with a platform to grow their market for all manner of services while providing Cell C with the financial muscle to compete with the two local juggernauts. For some time now, Net1 CEO Serge Belamant has been looking to create a platform that would make his company less reliant on business from the South African Social Security Agency (Sassa) contract. The pressure to look beyond Sassa stems not just from its pending termination, but also from the clampdown on selling financial products to grant beneficiaries. So the planned tie-up looks like a positive development for all concerned. Except for one thing, the part of the transaction where the competition authorities get to interrogate whatever takes their fancy. Whatever takes their fancy is referred to in the Competition Act as publ...
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