Vodafone has survived a last-minute attempt by South Africa’s trade unions to block its acquisition of a controlling stake in the country’s largest mobile operator, Vodacom. According to a Financial Times (FT) report, the deal was thrown into doubt late last week when the country’s telecoms regulator reportedly withdrew its support for the deal following a court action by the Congress of South African Trade Unions (COSATU). However, later reports suggest the appeal was rejected by the court over the weekend leaving Vodacom free to list on the Johannesburg Stock Exchange today as originally planned. Under the terms of the deal, Vodafone is to pay US$2.5 billion for an additional 15 percent in the operator to lift its stake to 65 percent. Telkom – previously Vodafone’s 50:50 joint partner in Vodacom – plans to hand its remaining 35 percent stake in the company to its shareholders.

COSATU, which believes the deal will lead to job cuts, had praised the regulator’s earlier decision to block the deal as “a great victory for the people of South Africa.” The decision would have led to the deal being delayed in order to hold a series of public hearings. The political tensions surrounding the deal have heightened following the recent election of the new South African president, Jacob Zuma, who was reportedly strongly backed by the country’s trade unions during his campaign. According to the FT, the trade unions have said they intend to continue to campaign against the deal and have said they will boycott Vodacom.