- The Federal Court of Australia has given the green light for the proposed merger between Vodafone and TPG Telecom (TPM)
- Last May, the Australian Competition and Consumer Commission (ACCC) rejected the $15 billion merger
- Early in September, Vodafone accused the ACCC of hurting the competition by rejecting the merger
- Today, the court has given the thumbs up for the merger to go ahead, as it will not lessen the competition
- TPG’s Directors have told shareholders to vote in favour of the Scheme, as they will be doing the same
- On market close, TPG is up 11.5 per cent trading at $8.15 apiece
The Federal Court of Australia has given the green light for the proposed merger between Vodafone Hutchins Australia (VHT) and TPG Telecom (TPM).
Last May, the Australian Competition and Consumer Commission (ACCC) rejected the $15 billion merger as it believed it would discourage both from competing in each others market.
Early in September, Vodafone accused the ACCC of hurting the competition by rejecting the merger.
Today, the court has given the thumbs up for the merger to go ahead, as it will not lessen the competition.
Hong Kong company, Hutchison Telecommunications (HTA) has a 50 per cent interest in Vodafone Australia.
TPG is in the telecommunications industry and provides customers with communication services that are reliable, fast and cost-effective.
The companies will work together to complete the merger so that the benefits can flow to Australian consumers.
VHA Chief Executive Officer Iñaki Berroeta said it was a great outcome for the Australian economy as it would allow for greater investment in next-generation networks, including 5G.
“It’s been 18 months since we commenced the approval process for this merger and we’re very keen to move forward and deliver these benefits as soon as possible,” Iñaki said.
“We have ambitious 5G rollout plans and the more quickly the merger can proceed, the faster we can deliver better competitive outcomes for Australian consumers and businesses,” he added.
However, Iñaki said the lengthy process has given “free kicks” to competitors for some time.
The Court’s approval has now removed the uncertainty and Vodafone could accelerate the delivery of 5G technology to its customers.
TPG’s Directors have told shareholders to vote in favour of the Scheme, as they will be doing the same.
“TPG is very pleased with the Federal Court decision and looks forward to combining with VHA to create Australia’s newest fully integrated telecommunications operator,” Executive Chairman David Teoh said.
“We will work to finalise the other conditions to the merger as soon as possible,” he added.
On market close, TPG is up 11.5 per cent trading at $8.15 apiece. While HTA is up 17.9 per cent, trading at 16.5¢ per share.