Australian regulator defers decision on proposed merger of TPG and Vodafone

The Australian Competition and Consumer Commission (ACCC) has set a May 9, 2019 as the deadline for the decision over the proposed merger of TPG and Vodafone Australia, according to a report by ZDNet. This latest deadline come close on the heels of another delay by the ACCC when it opted out of the decision-making process on March 28.

It was expected that ACCC would reach the decision by the end of December last month but that didn’t happen, and the regulatory body opted out of the process and said that it needed more time and information before coming to any conclusion.

At the time, ACCC released a statement saying that it was also looking into the long-term mobile impact as 5G and the regulator also outlined concerns about TPG becoming Australia’s fourth mobile carrier.

” If TPG remains separate from Vodafone, it appears likely to need to continue to adopt an aggressive pricing strategy, offering cheap mobile plans with large data allowances. Our preliminary view is the merged TPG-Vodafone would not have the incentive to operate in the same way,” ACCC Chairman Rod Sims had said at the time.

Earlier this week, TPG registered a Q1 net profit of just AU$47 million, which is a decrease of 76 percent following the abandonment of its mobile network rollout. The company also saw a dip in revenues which currently stands at  AU$1.2 billion.

The first signs of merger came to light in August when TPG and Vodafone announced that they have entered into discussions to form a telecom giant that would be valued around AU$15 billion and they announced the plans of the merger a week later. If the proposed merger takes place, Vodafone Australia CEO Inaki Berroeta would serve as the CEO and Teoh as the chairman.

Source: ZDNet

Image: Shutterstock

Australian regulator defers decision on proposed merger of TPG and Vodafone
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