TPG & Vodafone Merger Rumours Resurface
Recent reports claim Vodafone Australia and TPG Telecom are amidst merger discussions, with the latest swing of rumours resurfacing after initial market speculation in 2015.
According to The Australian, rumours have emerged that investment bankers from Macquarie Capital and UBS are working on a proposed tie-up.
Commentators query whether further information will be provided in mid-September, when TPG delivers its full-year earnings result.
A merger of the two companies is tipped to significantly ramp up competition against Telstra and Optus.
The deal is set to capitalise on congruities between Vodafone’s telecomm towers and TPG and iiNet’s fibre networks.
The news comes after Vodafone attempted to sell its New Zealand business last year, with plans for an IPO suspended.
Commentators claim the latest rumours explain a surge in TPG Telecom’s share price in the past week – jumping from $5.70 to $6.29.
The Australian claims TPG Telecom may also be exploring a roaming deal, rather than a market merger.
Questions over the ACCC’s response to the two companies’ tie-up have also been raised.
Should the deal be executed before TPG’s bid on 5G spectrum, consensus is some major concerns will be alleviated.