Caricom investigates CWC’s acquisition of Columbus International Inc
PARAMARIBO, Suriname (CMC) – The Suriname-based Caribbean Community (Caricom) Competition Commission (CCC) says it has launched an investigation into the multibillion-dollar acquisition of Columbus International Inc (Columbus) by the British telecommunication giant, Cable and Wireless Pls (CWC).
“The investigation will focus on the impact of the agreement on competition in the telecommunications sector of members of the Organisation of Eastern Caribbean States (OECS) which comprise the Eastern Caribbean Telecommunications Authority (ECTEL),” the CCC said in a statement.
In April last year, CWC announced that it had fully acquired Columbus in a deal worth US$1.85 billion but ECTEL had expressed reservation about the deal and its impact on its member states.
ECTEL had warned that both CWC and Columbus Communications could be in breach of their licences if they engage in activities, which can unfairly prevent, restrict, or distort competition..
“The decision to combine business by the two companies can have a negative impact on the telecoms sector and this has provided further impetus for the revision of existing legislation and rules governing competition in the sector, including the proposed new Electronic Communications Bill,” ECTEL said in a statement when the plans of the merger were first announced in 2014
The CCC said that it has appointed an investigating panel in accordance with the Caricom Competition Commission Rules of Procedure 2011 to coordinate the investigation.
“The Commission expects to complete the investigation within 120 working days with the cooperation of all stakeholders as set out under Article 175 (6) (b) or where circumstances warrant extend the time under Article 176 (6) (c) of the Revised Treaty of Chaguaramas (RTC),” it said.
The CCC said that it has been looking into the issue since January 2015 and that where the acquisition was approved in Jamaica, Barbados and Trinidad and Tobago, in the case of Bridgetown and Port of Spain “those decisions require the company to divest some its assets”.
It said there are outstanding issues related to some of the OECS member states and that approximately six or seven member states will be affected.
“There are aspects of those telecommunications sector has returned to what they were 10 years ago – one supplier,” it noted.
CWC has since been bought over by another British-based telecommunication company, Liberty Global Plc.
