There have been whispers in the last few days about a merger between Vodafone Hutchison Australia (VHA) and TPG in the wind, but those rumors have now been confirmed.
The two telcos have announced today that they have decided to enter into a "merger of equivalent transaction to establish Australia's leading challenger full-service telecommunications provider".
According to a statement by TPG: "The merger will create a more effective challenger for Telstra and Optus, with an integrated fixed and mobile offering and a pro forma business value of approximately $ 15 billion."
The & # 39; fusion of the same as transaction & # 39; is the distribution of the shares – the shareholders of Vodafone will own 50.1% of the shares in the new company and the remainder of the shares will be held for 49.9% by the shareholders of TPG.
So, what's new?
Vodafone and TPG come together at more than 27,000 km of fiber and 500 mobile sites across the country, with more than 6 million mobile users and 1.9 million regular customers. Yet there are no plans to make changes, at least for the time being.
Vodafone's chief commercial officer, Ben McIntosh, said it would be "business as usual for customers". Vodafone customers will continue to use, upgrade or change their current plans and will continue to enjoy "$ 5 Roaming, no lock-in-handset contracts, 35-day pre-paid due date, and NBN Instant Connect and 4G Backup."
Although the merger was informally approved and announced to the ASX, the companies must also be formally approved by the Australian Competition and Consumer Commission (ACCC) and the Foreign Investment Review Board.