Vodafone Hutchinson and TPG Telecom have confirmed plans to merge in Australia, with the combined entity set to create a $15 billion â€śchallengerâ€ť 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 â€śintegrated fixed and mobile offeringâ€ť.
The new-look business will see David Teoh – current CEO and chairman of TPG – take over as chairman of the merged group, while IĂ±aki Berroeta – current CEO of Vodafone – will become managing director and CEO.
Billed as a â€śmerger of equalsâ€ť, the provider brings together more than 27,000km of metropolitan and inter-capital fibre networks, alongside a mobile network with over 5,000 sites.
â€śThe merger with Vodafone represents an exciting step-change in TPGâ€™s evolution, and will benefit both our shareholders and Australian consumers alike,â€ť Teoh said.
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â€śThe Australian telecommunications market is characterised by the presence of Telstra and Optus,â€ť 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.
â€śThe 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.
â€śWe are confident that this merger will be highly beneficial to customers, shareholders and other stakeholders.â€ť
Furthermore, Berroeta said the merger will create an organisation with the â€śnecessary scale, breadth and financial strengthâ€ť for the future.
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â€śThe 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,â€ť Berroeta added. â€śThe big winners of this will be Australiaâ€™s consumers, with the new company able to deliver even greater competition and value.
â€śFrom VHAâ€™s 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.â€ť