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ACCC Tipped To Delay TPG-Vodafone Merger

Recent reports claim the ACCC will delay its decision on the proposed $15 billion TPG-Vodafone merger, citing a lack of sufficient information provided by telcos.

Reported by The Australianthe regulator is set to extend its provisional decision date from March to April.

As previously reported, in December the ACCC announced it had “preliminary competition concerns” – sending TPG shares driving 16.67% to $6.45, and Hutchinson down 17.86%.

In a published statement, the ACCC advised removing TPG as an independent competitor – with its own network – could likely result in a substantial lessening of competition.

“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,” said ACCC Chair Rod Sims at the time.

“Our preliminary view is the merged TPG-Vodafone would not have the incentive to operate in the same way, and competition in the market would be reduced as a result”

“A mobile market with three major players rather than four is likely to lead to higher prices and less innovative plans for mobile customers.”

Shares in TPG Telecom have since improved, currently trading at $7.15.



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