Vodafone in €9bn Australian merger

Marco Green
Сентября 2, 2018

The proposed merger openly admits this is a move to "compete more effectively with Telstra and Optus", though it also cites a desire to "invest and drive innovation, service and product improvement to benefit Australian telecommunications customers".

Vodafone Hutchison Australia and TPG Telecom announced plans yesterday to merge into a A$15 billion (S$15 billion) unit to take on key rivals Telstra and Optus as competition heats up in the telecommunications sector.

Adding that the equal terms of the merger will help preserve the competitive strength of the two firms, Berroeta further stated that the combined entity will establish TPG Telecom Limited as a long-haul player in the Australian telecommunications market.

Berroeta would run the new company with Teoh as chairman, TPG Telecom and Vodafone Hutchison Australia said in a joint statement. It has a fixed-line residential subscriber base of over 1.9 million users and significant corporate, government and wholesale business.

Its share price surged more than 11 percent in morning trade in Sydney to A$8.77 on the news.

Vodafone Hutchison Australia is the country's third largest mobile operator which is jointly owned by Vodafone Group and Hutchinson Telecommunications Australia. It has a mobile customer base of approximately 6 million subscribers. "We are confident that this merger will be highly beneficial to customers, shareholders and other stakeholders".

Nick Read, chief executive designate of Vodafone, said: "This transaction accelerates Vodafone's converged communications strategy in Australia and is consistent with our proactive approach to enhance the value of our portfolio of businesses".

Reports claim that the merger would be completed by 2019 following approval by regulators including the competition watchdog and the Foreign Investment Review Board.

As part of the deal, TPG said it would also spin out its Singapore mobile business, separating it from the new merged company.

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