In another blow for Telstra The Macquarie and Aware Super-owned Vocus Group has acquired TPG Telecom’s fibre network assets for $5.25 billion a move that could strip BN2b broadband business from the national carrier.

The move that delivers a more competitive digital telecommunications market after finally buying TPG Telecom’s fibre network assets for $5.25 billion could see major retail groups, Government and large corporations shopping for better fibre broadband prices claims analysts.

The acquisition still requires approval from both the Australian Competition and Consumer Commission and the Foreign Investment Review Board with both organisations confident that a deal could be approved by the second half of 2025.

The AFR Claims the deal, which comes after previous negotiations over a $6.3 billion transaction broke down in late 2023, will allow Vocus to add 24,000 kilometres of TPG fibre networks, mostly in cities, to its existing 27,000 kilometres of fibre, which is dominated by regional areas.

TPG boss Inaki Berroeta said the deal will enable the telco to run a simpler operating model.

The deal will significantly bolster TPG Telecoms bottom line with the business set to nett between $4.65 billion and $4.75 billion in cash after the transaction is completed.

TPG chief executive Iñaki Berroeta said the asset sale was smaller than the company had initially anticipated when it started talks with Vocus in 2023 but created a simpler operating model.

“The deal unlocks the value of our fixed infrastructure assets while strengthening our financial position and creating a more focused and streamlined business with significant optionality for the optimisation of our capital structure,” Mr Berroeta said.

Ani Satchcroft, Macquarie Asset Management’s Asia-Pacific co-head of infrastructure, said the acquisition would give the Vocus the scale to compete more effectively.

TPG will pay $130 million annually to Vocus for access to network services over an initial term of 15 years.