Stanlib’s acquisition poised for tribunal review.
The Samrand Data Centre in Johannesburg may soon return to Standard Bank, as the Competition Commission recommended that its asset management unit be allowed to acquire Strive Masiyiwa’s Africa Data Centres (ADC).
Data centres — which are typically specialised facilities that manage IT infrastructure, including servers, storage devices and network equipment — and related digital structures have become increasingly attractive investment targets for asset managers. Such businesses tend to be backed by long-term customer contracts, which also ensure stable and predictable revenue and cash flow.
Growth in the sector has been underpinned by the advent of cloud computing over the past decade and a half, currently benefitting from the demand created by the boom in artificial intelligence (AI).
On Thursday, the commission which investigates matters of antitrust and market structures said it had recommended that the Competition Tribunal “approve the proposed transaction whereby Stanlib Fund II intends to acquire Cassava ADC, without conditions”.
The transaction amount is undisclosed, with adjudication now moving to the Competition Tribunal, which will give or refuse the final competition authority.
The move comes three months after the fund manager announced an initial investment in the data centre provider.
“The commission is of the view that the proposed transaction is unlikely to substantially lessen or prevent competition in any market. The proposed transaction does not raise significant public interest concerns.”
ADC, a unit of Zimbabwean billionaire Masiyiwa’s Cassava Technologies group, operates a network of hyperscale and edge data centres in Southern, East and West Africa.
Cassava had taken advantage of its fibre network, through Liquid Intelligent Technologies, to create a data centre service on the continent. Through ADC, the company is one of Africa’s largest data centre operators. In South Africa, the company bought the Samrand Data Centre, north of Johannesburg, from Standard Bank for an undisclosed sum.
Under Cassava’s stewardship, much investment has gone into building ADC.
In late 2021, the group set aside $500m to expand its facilities. At the time, ADC said it would build 10 hyperscale data centres in Africa, including in South Africa, Nigeria, Kenya, Morocco and Egypt.
In 2024, RMB backed ADC’s expansion plans with a R2bn facility, which had been earmarked to boost capacity.
Source: Business Day
