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Vodafone Australia, TPG to Merge in a $11b Deal

Vodafone Australia, TPG to Merge in a $11b Deal Image Credit: digitalista/Bigstockphoto.com

TPG Telecom and Vodafone Hutchison Australia(VHA) announced a merger of equals transaction worth $11 billion.

TPG shareholders will own 49.9% of the new merged group with VHA shareholders owning the remaining 50.1%. The merger will provide scale and financial strength to compete more effectively with Telstra and Optus, and be better able to invest and drive innovation, service and product improvement to benefit Australian telecommunications customers.

David Teoh, current CEO and Chairman of TPG, will be Chairman of the Merged Group, while Iñaki Berroeta, current CEO of VHA, will be the Managing Director and CEO of the Merged Group. Vodafone Hutchison Australia (VHA) in a statement assures customers they will continue to enjoy Vodafone’s world-class mobile network, Vodafone nbn,  and its value-packed plans and products following the merger.

In parallel to the merger agreement, TPG and VHA have signed a separate Joint Venture Agreement. The scope of the joint venture is to acquire, hold and licence 3.6 GHz spectrum. The Government is auctioning 125 MHz of 3.6 GHz band spectrum, with the auction expected to commence in late November 2018.

The joint venture will register as a participant in the auction. In addition, the parties will negotiate with the aim of expanding the business of the joint venture in future, including to acquire future spectrum licences and/or facilitate various forms of efficient spectrum and network sharing including a shared 5G RAN.

David Teoh, Chairman, TPG
Together TPG and VHA will have a comprehensive portfolio of fixed and mobile products, and will own the infrastructure required to deliver faster services and more competitive value propositions to Australian customers. With this merger, we will be a more formidable competitor against Telstra and Optus.

Inaki Berroeta, CEO, VHA
The Australian telecommunications market is characterised by the presence of Telstra and Optus. Together, TPG and VHA will provide stronger competition in the market and greater choice for Australian consumers and enterprises across fixed broadband and mobile.

Author

Ray is a news editor at The Fast Mode, bringing with him more than 10 years of experience in the wireless industry.

For tips and feedback, email Ray at ray.sharma(at)thefastmode.com, or reach him on LinkedIn @raysharma10, Facebook @1RaySharma

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