Singtel shares up 7.5% on news of rival Vodafone merger with TPG Telecom

After news of a potential merger between rival Vodafone and TPG Telecoms, Singtel price shot up to S$3.31 ~ 7.5% higher compared to last closing price.

A merger between the two will see less competition in Australia where Singtel generates over half of its revenues.

The merger would implicate TPG’s entry in Singapore. It may probably be less aggressive or may sell off it’s Singapore unit to the incumbent telcos. That might mean we will be back to 3 telcos + MVNOs.

Stock price of M1 is up 4 cents to S$1.59 and Starhub remains unchanged at S$1.65.