Australian court rules $10 billion Vodafone, TPG merger would not hurt competition
A lady holds her cellphone as she walks previous an commercial for Australia’s TPG Telecom Ltd in central Sydney, Australia, April 12, 2017. REUTERS/Steven Saphore
SYDNEY (Reuters) – An Australian Federal court decide stated on Thursday an agreed A$15 billion ($10.1 billion) merger between an area three way partnership of Britain’s Vodafone Group PLC and web supplier TPG Telecom Ltd would not reduce competition.
The ruling seems to overturn a choice by antitrust regulator the Australian Competition and the Consumer Commission (ACCC), which blocked the deliberate deal final yr.
The ACCC had stated a tie-up between the businesses would discourage Vodafone, Australia’s second-largest cell phone firm, from getting into the web market and discourage TPG from constructing a cell phone community.
However, a merger between the 2 “would not substantially lessen competition”, Federal Court decide John Middleton stated in a televised ruling.
Vodafone’s Australian three way partnership accomplice Hutchison Telecommunications and TPG Telecom had been each in a buying and selling halt on Thursday.
Reporting by Byron Kaye; Editing by Sandra Maler and Jane Wardell