Vodafone and TPG Telecom Merger Approved by Australian Court

A federal court in Australia approved a merger deal between Britain based Vodafone Group (VOD) and TPG Telecom (TPM) on Thursday. The merger deal will be worth $10.1 billion (A$15 billion).

The two companies were aiming to close the deal last year, however, the process was met with a backlash from the Australian Competition and Consumer Commission (ACCC) which argued the merger would affect competition negatively in the country.

Nonetheless, the court overruled against the regulator saying a linkup between the joint venture Vodafone has with Hutchison Telecommunications (HTA) and TPG Telecom in Australia would not harm competition in any way.

Following this ruling ACCC has 30 days to file for an appeal.

TPG founder David Teoh said he was pleased with the court’s ruling even though the merger has some several steps ahead.

“TPG is very pleased with the Federal Court decision although it still needed shareholder and other regulatory approvals,” said Teoh.

Vodafone had been constructing 5G network in Australia before it suspended the construction following an Australian ban on parts supplied by Huawei Technologies.

“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,” said CEO of Vodafone in Australia, Iñaki Berroeta.

On the other side, ACCC was astonished by the court’s ruling claiming Australian citizens would be the greatest losers.

“Australian consumers have lost a once in a generation opportunity for stronger competition and cheaper mobile telecommunications services with this merger now allowed to proceed,” said ACCC Chairman, Rod Sims.