Telco Analyst backs NCA's due diligence on Vodafone-Telecel deal
The NCA had earlier refuted claims to the effect that it was trying to block the deal per its August 2 statement.
A Telecommunication Analyst, Fouad Chalabi has backed and given thumbs up to the National Communications Authority’s(NCA) quest to ensure due diligence in the acquisition of Vodafone Ghana by Telecel.
The NCA had earlier refuted claims to the effect that it was trying to block the deal per its August 2 statement.
In that Statement, the NCA noted that In January 2022, it received an application for the transfer of 70% majority shares in Ghana Telecommunications Company Limited(Vodafone Ghana) from Vodafone International Holdings B.V. to the Telecel Group.
It added that “In accordance with due process, the Authority evaluated the application on various criteria and engaged both Vodafone and Telecel Group. After a critical regulatory review and evaluation, the NCA concluded that the request did not meet the regulatory threshold for approval to be granted”
In an interview with Joy Business, Mr. Chalabi said that the role of a regulator like the NCA is to ensure fair competition while protecting the interests of subscribers thus the NCA needs to have a say in the transaction.
He added that as a general rule, regulators are usually watchful in acquisitions that involve a giant company being acquired by another that is not a marker giant.
Mr. Chalabi further explained that in deals like the present one, the regulator ought to know for policy information,the circumstances forcing a major player to exit the market.
