TPG and Vodafone confirm plans to merge

TPG and Vodafone today announced plans to merge, with the intention to form a new telecommunications giant to better compete with Telstra and Optus.

The move is being described as a "merger of equals"; TPG shareholders will own 49.9% of the new merged group, Vodafone shareholders will own the remaining 50.1%. Vodafone Australia CEO Iñaki Berroeta will be the CEO and managing director of the new group, while TPG chairman David Teoh will take the role of chairman. The merged entity will be valued at approximately $15 billion.

The new company will be called TPG, but there are no changes currently planned to either TPG or Vodafone's existing consumer-facing brands.

The merger is subject to regulatory approvals, TPG shareholder approval, and court approval. Assuming these conditions are all satisfied, the merger is expected to be implemented next year.

If approved, the new company will have approximately 22% market share in fixed line broadband and 20% in mobile.

Both telcos' heads have pitched the merger as an opportunity to compete more effectively with Telstra and Optus.

"Together TPG and [Vodafone] will have a comprehensive portfolio of fixed and mobile products, and will own the infrastructure required to deliver faster services and more competitive value propositions to Australian customers," said TPG's Teoh. "With this merger, we will be a more formidable competitor against Telstra and Optus."

"The Australian telecommunications market is characterised by the presence of Telstra and Optus," said Vodafone's Berroeta. "Together, TPG and [Vodafone] will provide stronger competition in the market and greater choice for Australian consumers and enterprises across fixed broadband and mobile. The combination of our two highly complementary businesses and talented employees will create a more sustainable company, with enhanced capacity to invest in new technology and innovation."

For the time being, Vodafone says "it's business as usual" and Australians "can continue to use our services, upgrade or change plans, or join us as a new customer with confidence"

Alex Choros

Managing Editor + Group Telco Editor | X | Instagram | Threads | LinkedIn

Alex Choros is the Managing Editor of WhistleOut Australia and an award-winning journalist. He's been writing about consumer technology for over a decade and is an expert on the Australian telco sector, to the point where he knows far too many phone and internet plans by heart. In addition to leading the WhistleOut editorial team, Alex is responsible for ruining the office Sonos with his troubled taste in music.

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