Australian court approves $10 bn Vodafone-TPG merger

guest · Feb 13, 2020

Australian court approves $10 bn Vodafone-TPG merger
February 13, 2020
https://techxplore.com/news/2020-02-australian-court-bn-vodafone-tpg-merger.html

Two of Australia's largest telecommunications firms appear set to merge, after a court ruled on Thursday that the multi-billion-dollar deal between Vodafone and TPG would not pose a major threat to competition.

The Australian Competition and Consumer Commission (ACCC) had blocked an attempted Aus$15 billion (US$10 billion) merger between the country's third- and fourth-largest telecommunications companies, Vodafone and TPG.
The ACCC said it believed the smaller firm could have become an "innovative and disruptive" mobile phone provider in the country's concentrated market, which is dominated by Telstra, Optus and Vodafone Australia.

But in a case brought against the ACCC by Vodafone—which would have the majority stake in the merger—Federal Court judge John Middleton ruled in the company's favour.

"The court has come to the view that the proposed merger would not have the effect, or be likely to have the effect of substantially reducing competition... the merger can proceed," public broadcaster ABC reported him as saying.
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The merger is expected to be completed by mid-2020 unless shareholder opposition or an appeal by the ACCC hold up that process.
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guest · Feb 15, 2020

Comms minister Fletcher welcomes TPG-Voda merger decision
February 14, 2020
https://www.crn.com.au/news/comms-minister-fletcher-welcomes-tpg-voda-merger-decision-537974

The Federal Court yesterday approved the long-awaited TPG-Vodafone merger, overturning an earlier ruling by the Australian Competition and Consumer Commission (ACCC).

Reaction was mixed. The Australian Competition and Consumer Commission (ACCC) stuck to its guns, re-iterating its concerns that the deal would reduce competition in the telco sector and that if TPG stands alone and builds a mobile network, it could use its TPG, iiNet and Internode customers to create a viable new mobile carrier.
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But Federal Minister for Communications, Cyber Safety and the Arts Paul Fletcher all-but welcomed the decision and said it "clears the way" for a stronger third player in the mobile market and that it would bring greater competition in the market.

“It is absolutely appropriate that the competition implications of the proposed merger have been very carefully examined by the ACCC and the Federal Court, as the central policy question is how to maximise competition in the mobile market," Fletcher said.
“The Australian mobile market has long been dominated by Optus and Telstra. We believe that the merger will create a more sustainable market with three strong mobile network operators in Australia that can build excellent 5G networks, benefiting consumers,” Amaysim CEO and managing director Peter O’Connell said.
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guest · Mar 6, 2020

ACCC bows out of TPG/Vodafone fight
March 5, 2020
https://www.crn.com.au/news/accc-bows-out-of-tpg-vodafone-fight-538944

Vodafone and TPG’s $15 billion merger has cleared another hurdle with the Australian Competition and Consumer Commission deciding not to appeal last month’s Federal Court ruling.

The ACCC unsuccessfully tried to block the merger from proceeding, arguing Australia would be better off with more mobile carriers, not fewer.
But the Court ruled in favour of Vodafone and TPG last month, [...] The ACCC had 28 days to appeal the judgment but has decided not to.

Vodafone Hutchison Australia (VHA) CEO Iñaki Berroeta welcomed the ACCC’s decision not to appeal, saying it “cleared the way to take the next steps to finalise the merger.”

“Ultimately, consumers and businesses will be the big winners from this merger. After 18 months of uncertainty, we’re excited to now be able to progress our plans.
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guest · Mar 26, 2020

TPG-Vodafone merger inches closer with new approvals
March 26, 2020
https://www.crn.com.au/news/tpg-vodafone-merger-inches-closer-with-new-approvals-539843

TPG Telecom has revealed that its proposed merger with Vodafone has cleared another regulatory hurdle.

In an ASX announcement (pdf) posted today, the telco said it has received consents from the Committee for Foreign Investment in the United States (CFIUS) and the United States Federal Communications Commission (FCC).
The consents would allow the proposed change of control of a submarine cable between Sydney and US territory Guam from TPG Telecom to the merged company.

“TPG is continuing to work towards meeting the remaining regulatory conditions so as to complete the merger with Vodafone in mid-2020.”
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guest · May 7, 2020

Vodafone Australia and TPG merger receives FIRB approval
May 7, 2020
https://www.zdnet.com/article/vodafone-australia-and-tpg-merger-receives-firb-approval/

Vodafone Hutchison Australia (VHA) announced on Thursday it has received approval from Australia's Foreign Investment Review Board (FIRB) for the telco to merge with TPG.
Once completed, the merger of the two companies under the TPG moniker would create a AU$15 billion entity.

Under the terms of the deal, 50.1% of the company will be owned by Vodafone Australia shareholders and 49.9% by TPG shareholders, respectively, with current Vodafone chief Inaki Berroeta to serve as CEO and current TPG chief David Teoh to serve as chair.

"The merger is now another significant step closer to reality, and we're progressing our plans to bring the two companies together mid-year," Berroeta said on Thursday.
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guest · Jun 24, 2020

TPG shareholders vote for merger with Vodafone to go ahead
June 24, 2020
https://www.itwire.com/telecoms-and...ote-for-merger-with-vodafone-to-go-ahead.html

TPG shareholders on Wednesday voted in favour of the merger of the two companies and also in favour of a special resolution to change the company's name from TPG Telecom to TPG Corporation.

VHA chief executive Iñaki Berroeta said in a statement the vote was one of the final steps towards implementation of the merger.

“Today is a significant milestone in the merger process and subject to final court approval, we will be bringing VHA and TPG together in two and a half weeks,” he said.
The merger, announced in August 2018, was given the go-ahead by the Federal Court in February, after the two companies challenged a decision by the competition regulator to block the deal because of it causing was said to be less competition in the sector.
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The scrip deal would create a company with an enterprise value of about $15 billion, according to the initial announcement made to the ASX. It said 50.1% of the merged entity would be owned by Vodafone with the remainder to be owned by TPG.
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