$15B Vodafone-TPG Merger Proceeds After ACCC Decides Not To Appeal

Enigmatic telco entrepreneur David Teoh has signalled a combined TPG Telecom-Vodafone will seek to use 5G fixed wireless services to take on the National Broadband Network in the residential internet market.

Mr Teoh, executive chairman of TPG, is poised to become chairman of the merged company after the competition regulator said it wouldn’t appeal a court ruling allowing the AU$15 billion (US$9.9 billion) tie-up to proceed.

“A great relief for all of us here,” Mr Teoh said when asked about the news.

The combined company’s assets, including fiber links and spectrum, would put it on a strong footing to compete in both mobile and fixed-line markets, including potentially through the sale of wireless services that compete directly with the NBN, he said.

“We certainly can come up with a good network and a good product that will benefit the consumer” he said.

[There is a] tremendous opportunity in the marketplace with the 5G fixed wireless opportunity, so the future is very bright for the merged company.”

TPG released its half-year financial result on Thursday, March 5, upgrading earnings forecasts for the full year. Revenue for the half was up 0.9% to AU$1.25 billion (US$824.2 million). Net profit more than doubled to AU$144 million (US$94.9 million). Australian Competition and Consumer Commission chair Rod Sims said the competition regulator did not have grounds for an appeal.

Full Content: Financial Review

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