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Australia: Consumer group wants ACCC to approve TPG-Vodafone deal

By  |  May 6, 2019

Analysts and consumer advocates believe an overwhelming case has been made for a merger between TPG Telecom and Vodafone Hutchison Australia, and warn a decision to block the deal could lead to court action.

The Australian Competition and Consumer Commission is due to hand down its decision on the landmark $15 billion merger on Thursday. If favourable, it would give the green light to create a powerful third provider.

In December last year, the competition watchdog issued a preliminary reporton the proposed merger, saying that the disappearance of TPG, which it viewed as being on the way to becoming a fourth mobile competitor in Australia, from the fray through its merger with Vodafone would substantially lessen competition in the sector.

TPG and Vodafone announcedthe proposed merger on 30 August last year, with the with the scrip deal creating a company with an enterprise value of about $15 billion.