The Australian Competition and Consumer Commission (ACCC) has said it will not oppose Vocus Communication Limited’s planned acquisition of M2 Group Limited. In confirming its decision, the ACCC claimed that the two companies have ‘limited overlaps in the supply of retail and wholesale fixed broadband services; the supply of retail and wholesale fixed voice services; the acquisition of transmission services and the supply of data centre services’. Further, it argued that in those markets where Vocus and M2 do overlap, they tend to focus on different customer segments, with M2 mainly focused on residential and small business customers and Vocus mainly focused on large enterprise and government customers.
As such, the regulator noted that the proposed acquisition will not significantly increase vertical integration between wholesale and retail telecommunications services providers, with ACCC chairman Rod Sims commenting: ‘This [is] primarily a merger between two complementary businesses. Significantly, the merged firm will also face significant competition from Optus, Telstra and TPG. This merger consolidates the fourth player in the market.’