Consumers the big winners as Vodafone embarks on new era
Merger with TPG to proceed in coming months
Vodafone Hutchison Australia (VHA) will enter a new era and bring substantial benefits to Australian consumers after the ACCC’s decision not to appeal the Federal Court’s ruling on the merger with TPG Telecom.
VHA Chief Executive Officer Iñaki Berroeta welcomed the ACCC’s decision not to appeal and said it cleared the way to take the next steps to finalise the merger.
“We are pleased that the ACCC has decided not to appeal the Court’s decision and that will allow us to quickly progress completion of the merger with TPG. We believe that the merger will allow us to be a stronger player that will bring more choice and value for Australian consumers and businesses,” he said.
Vodafone announced today that it had switched on its first 5G sites around Parramatta, delivering 5G connectivity to customers for the first time. A phased 5G rollout across Australia’s major capitals will commence in coming months and 5G international roaming will follow.
“We have ambitious 5G rollout plans. The more quickly the merger can proceed, the faster we can deliver better competitive outcomes for Australian consumers and businesses,” Mr Berroeta said.
“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.
“Finally, Australia will see a third, fully-integrated telecommunications company with the scale to compete head-to-head across the whole telecoms market.”
Mr Berroeta said the merger should be completed in mid-2020, subject to the remaining regulatory and shareholder approvals.
“We’ll continue to keep our customers and the market informed of our progress as we embark on this exciting new era,” he said.
30 August 2018
VHA announces a merger of equals with TPG.
8 May 2019
The ACCC announces that it opposes the proposed merger stating that it would “reduce competition and contestability” in the mobile services sector. It further states that if the proposed acquisition did not proceed, there was “a real chance TPG will roll out a mobile network”.
24 May 2019
VHA, working with TPG, files a Statement of Claim in the Federal Court.
10 September 2019 – 1 October 2019
Federal Court case is heard in Melbourne.
13 February 2020
The Federal Court approves the merger.
5 March 2020
ACCC announces it will not appeal the Federal Court decision.
Notes to editors
- Other regulatory approvals, namely the Australian Foreign Investment Review Board (FIRB) and the Committee for Foreign Investment in the United States (CFIUS), as well as shareholder approvals are anticipated in the coming months.