NEWSBYTE Vodafone’s Australian operation is to become the majority stakeholder in a new telecommunications giant, TPG Telecom Limited.
The A$15 billion ($11 billion) merger with one of the country’s largest internet providers, TPG, was announced today.
Combining the two companies will create a mobile, fixed-line, and broadband provider with the scale to rival Telstra and Optus, according to a report by the BBC this morning.
Vodafone Australia, owned by Hong Kong-based CK Hutchison and Vodafone Group, will have a majority 50.1 percent stake in the new venture, with the remainder held by the existing TPG.
“The combination of the two companies will create an organisation with the necessary scale, breadth, and financial strength for the future,” said Vodafone Hutchison Australia CEO, Inaki Berroeta, who will lead the new company.
“The equal terms of the combination preserves the competitive strengths of the two businesses, meaning a sustainable long-term fixed/mobile competitor to Telstra and Optus.”
David Teoh, current CEO and chairman of TPG, will become chairman of the new group.
Internet of Business says
The deal will need to be cleared by Australia’s competition authorities. Vodafone Australia is the third largest mobile provider in the country.