Vodafone Australia and TPG Telecom have agreed to merge into a single AU$15 billion (US$10.9 billion) telecommunications company that could provide a serious competitor to Telstra and Optus and help lower prices for consumers.
However, Vodafone Hutchinson Australia will have the majority stake (50.1%), while TPG’s stake will be 49.9%.
“The merger will create a more effective challenger to Telstra and Optus,” TPG stated. It estimates the merged company will be worth AU$15 billion (US$10.9 billion), with the deal to be finalised next year.
After the merger, the combined entity will re-list on the Australian Securities Exchange as TPG Telecom Limited.
The merger will undergo an initial 12-week revision, to be triggered by a formal submission by the merging companies.
ACCC chairman Rod Sims expressed some initial concerns about the deal: “No doubt the merger parties will argue it makes them stronger to compete with Telstra and Optus,” he said.
“On the other hand, having four players in the market can be better than three.”
Full Content: ABC
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