The Competition Tribunal has unconditionally approved the proposed merger between Cell C and Comm Equipment Company (CEC).
Cell C will acquire CEC, which is responsible for the mobile operator’s postpaid offerings, from Blue Label subsidiary The Prepaid Company (TPC).
Following the transaction, Cell C will exercise sole control over CEC.
The Competition Tribunal heard the matter on August 6, following the Competition Commission’s recommendation to the tribunal that the transaction be approved, subject to competition-related conditions.
Cell C, which is not controlled by any firm, relies on CEC to manage sales, marketing, support and administrative support and back-office services for its postpaid business. It also sources and sells handsets to Cell C postpaid subscribers.
Cell C subsidiary, Cell C Service Provider Company sells Sim cards and accessories to prepaid and postpaid subscribers.
CEC is a wholly owned subsidiary of TPC, itself wholly owned by Blue Label Telecoms, which is currently undergoing a restructure to facilitate a separation and potential future listing of Cell C on the JSE.