Vodafone has announced a major new merger that will see the UK company’s Australian operations, Vodafone Hutchison Australia, and TPG Telecom combine to form a new telecoms giant, TPG Telecom Limited.
The new company will be 50.1% owned by Vodafone Australia, itself jointly owned by Hong Kong-based CK Hutchison and Vodafone Group. TPG, one of the country’s largest internet service providers, will hold the remainder.
In a statement issued yesterday, Vodafone Hutchison Australia’s chief executive Inaki Berroeta said: "The combination of the two companies will create an organisation with the necessary scale, breadth and financial strength for the future. 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."
Mr Berroeta will be the managing director and chief executive of the new group. David Teoh, currently the CEO and chairman of TPG, will become the chairman.
Vodafone Hutchison Australia is the country's third largest mobile operator and is jointly owned by Vodafone Group and Hutchison Telecommunications Australia. It has a mobile customer base of approximately 6 million subscribers.
The Australian Competition and Consumer Commission has said it will be commencing a public review of the proposed merger to identify any competition concerns.