New Zealand incumbent claims there is minimal overlap between their respective operations.

Spark this week applied to the New Zealand Commerce Commission for clearance of its proposed acquisition of smaller rival TeamTalk.

TeamTalk offers mobile radio services and it also has two other operating companies: CityLink, a metro fibre provider focusing on Wellington’s central business district, and rural ISP and MVNO Farmside.

Spark agreed to acquire 100% of the company in February, in a deal valuing TeamTalk at €15.5 million.

In its application to the Commerce Commission, Spark said "there is only very limited competitive overlap" between the two companies.

The incumbent said TeamTalk’s Wellington fibre network is the primary motive for the takeover, given that Spark does not operate competing assets there.

Spark also said that it is better placed that TeamTalk to continue investing in, upgrading, and maintaining those fibre networks, enabling it to compete more effectively against wholesaler Chorus, Vodafone, and Vocus, among others.

"Accordingly, the transaction will achieve pro-competitive outcomes in the provision of fibre inputs/services, as well as for other TeamTalk services, without resulting in any reduction of the number of owners of local access fibre network assets," Spark said.

The Commerce Commission has yet to set a date for deciding whether to approve or block the transaction.