TPG and Vodafone announce $15 billion merger in Australia

TPG and Vodafone will merge Vodafone Hutchinson Australia will have the majority stake (50.1 per cent), while TPG’s stake will be 49.9 per cent.

If regulators approve the deal, it will be relisted on the Australian stock exchange as TPG Telecom Limited.

Vodafone Australia earned 30 per cent more revenue than TPG in the past financial year — $3.6 billion versus $2.5 billion.

TPG reported that it had 1.9 million broadband subscribers, with 22 per cent market share. This is an area in which Vodafone does not compete.

Vodafone has 6 million mobile subscribers, and has 19 per cent share of the mobile market while TPG only has 400,000 or 1% of the mobile market share.

TPG’s chief executive David Teoh, would be the non-executive chairman of the merged group, while Vodafone boss Inaki Berroeta would assume the position of CEO and managing director of the new entity.

Will TPG still continue to operate as the 4th telco in Singapore or will it stop the price war or come in as Vodaphone instead ?