VHA and TPG to file legal challenge over ACCC’s opposition to proposed merger

10 May 2019

Vodafone Hutchison Australia (VHA) has confirmed that it and TPG Telecom intend to launch legal action in the Federal Court following the Australia Competition and Consumer Commission’s (ACCC’s) decision to oppose their proposed merger. In a press release, VHA’s CEO Inaki Berroeta said his company remained ‘firmly committed’ to the prospective tie-up, noting: ‘VHA respects the ACCC process, but we believe the merger with TPG will bring very real benefits to consumers. We have therefore decided that VHA should, together with TPG, pursue approval of the merger through the Federal Court.’ Alongside claiming that the merger would see a combination of two complementary businesses which have ‘very little overlap’, Berroeta added that he believes the enlarged entity that would be created would be able to ‘compete more aggressively in this highly competitive market’.

As a result of the decision to challenge the ACCC’s ruling, VHA also confirmed that the merger agreement with TPG has now been extended to 31 August 2020, to allow sufficient time for the Federal Court to deliver its decision.