Vodafone Hutchinson and TPG Telecom have confirmed plans to merge in Australia, with the combined entity set to create a $15 billion ‚Äúchallenger‚ÄĚ in the market.
Following weeks of increased speculation, both parties have confirmed intentions to take on Telstra and Optus in a competitive local industry, driven by an ‚Äúintegrated fixed and mobile offering‚ÄĚ.
The new-look business will see David Teoh – current CEO and chairman of TPG – take over as chairman of the merged group, while I√Īaki Berroeta – current CEO of Vodafone – will become managing director and CEO.
Billed as a ‚Äúmerger of equals‚ÄĚ, the provider brings together more than 27,000km of metropolitan and inter-capital fibre networks, alongside a mobile network with over 5,000 sites.
‚ÄúThe merger with Vodafone represents an exciting step-change in TPG‚Äôs evolution, and will benefit both our shareholders and Australian consumers alike,‚ÄĚ Teoh said.
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‚ÄúThe Australian telecommunications market is characterised by the presence of Telstra and Optus,‚ÄĚ Berroeta added. “Together, TPG and VHA will provide stronger competition in the market and greater choice for Australian consumers and enterprises across fixed broadband and mobile.
‚ÄúThe combination of our two highly complementary businesses and talented employees will create a more sustainable company, with enhanced capacity to invest in new technology and innovation.
‚ÄúWe are confident that this merger will be highly beneficial to customers, shareholders and other stakeholders.‚ÄĚ
Furthermore, Berroeta said the merger will create an organisation with the ‚Äúnecessary scale, breadth and financial strength‚ÄĚ for the future.
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‚ÄúThe equal terms of the combination preserves the competitive strengths of the two businesses, meaning a sustainable long-term fixed/mobile competitor for Telstra and Optus,‚ÄĚ Berroeta added. ‚ÄúThe big winners of this will be Australia‚Äôs consumers, with the new company able to deliver even greater competition and value.
‚ÄúFrom VHA‚Äôs perspective, we are joining TPG from a position of strength and momentum. VHA has a track record of reliability, stability and a fantastic customer experience, which has seen the business prosper.‚ÄĚ