On Thursday, an Australian court has approved a merger of worth A$15 billion ($10.1 billion) between internet provider TPG Telecom (TPM.AX) and Britain’s Vodafone Group (VOD.L).
The judge of Federal Court said the link-up between Vodafone’s joint venture with local telco Hutchison Telecommunications (Australia) Ltd (HTA.AX) would not have an impact the competition. This further also rejected the Australian competition and Consumer Commission’s (ACCC) reason for withholding the deal last year.
According to reports, TPG has been working into developing the highly-anticipated 5G mobile market and Vodafone is also gearing up in competition. Vodafone also had to halt construction of its network owning to ban on parts supplied by China’s Huawei Industries.
“This merger…gives a lot more certainty that there will be a strong 5G player in the market. We have confirmation we’ll have three 5G players,” commented Vodafone Hutchison Australia’s CEO Iñaki Berroeta on a call with analysts.
On the other hand TPG founder and Executive Chairman David Teoh said in a statement the company was “very pleased with the Federal Court decision”.
On the other hand ACCC chair Rod Sims expressed disappointment in the court’s decision, saying Australian customers have “lost a once-in-a-generation opportunity for stronger competition and cheaper mobile telecommunications services”.