TPG Telecom had planned to merge with Vodafone’s Australian joint venture, to create a new converged provider of mobile and fixed line services
Australia’s TPG Telecom is to appeal against a court decision to block its proposed $10 billion merger with Vodafone.
The Australian Competition and Consumer Commission (ACCC) blocked the proposed merger earlier this month. The deal would have combined Vodafone’s mobile network with TPG Telecoms full fibre, fixed line network, creating a new provider of converged services.
“We believe the merger will create an entity that can compete more aggressively in the mobile market,” a Vodafone spokesperson told reporters from Reuters.
The pair had hoped that the merger would allow the newly formed entity to access cost saving synergies and be able to leverage enhanced economies of scale in the Australian fixed line and mobile markets. In doing so, TPG and Vodafone said that it would be able to significantly boost its network coverage, paving the way for their next generation networks in Australia.
Neither Vodafone or TPG Telecom has yet commented on their decision to appeal against the court’s decision.