Australia's federal court approved a planned A$10.9 billion merger of Vodafone Group plc's local business and phone company TPG Telecom Ltd, overturning opposition by the competition watchdog.[SYDNEY] Australia's federal court approved a planned A$10.9 billion merger of Vodafone Group plc's local business and phone company TPG Telecom Ltd, overturning opposition by the competition watchdog.
The Australian Competition and Consumer Commission had argued that as a standalone business, TPG might well invest in a new cellular network. The company was Australia's last chance to challenge incumbent giants Telstra Corp and Optus, owned by Singapore Telecommunications Ltd, the ACCC said. In a ruling in Melbourne on Thursday, Justice John Middleton rejected that argument, saying the"proposed merger would not have the effect, nor be likely to have the effect, of substantially lessening competition."
Vodafone Hutchison Australia - a venture between Vodafone's Australian mobile-phone division and CK Hutchison Holdings Ltd - said the merger with TPG should now be completed by the middle of this year, subject to any appeal. The ACCC said in a statement it was"carefully considering" the judgment. Shares in TPG surged 11 per cent in Sydney. Hutchison Telecommunications Ltd, home to CK Hutchison's stake in the venture with Vodafone, jumped 18 per cent. Telstra lost 1.6 per cent.
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