Vocus has just cleared a major hurdle in its bid to acquire TPG Telecom’s fixed-line business, transmission network, and enterprise customer base in a massive $5.25 billion deal.
The Australian Competition and Consumer Commission (ACCC) has given the green light, deciding not to oppose the transaction after reviewing it for the past few months.
However, the deal isn’t done yet—there are still a few more hoops to jump through, including approvals from the Foreign Investment Review Board and US regulators.
This agreement between Vocus and TPG was originally announced late last year, following a previous failed attempt at a sale.
With the ACCC now on board, the acquisition is one step closer to becoming a reality. The regulator concluded that Vocus and TPG primarily serve different market segments, meaning the deal is unlikely to raise competition concerns.
Now, all eyes are on the remaining approvals to see if this multi-billion-dollar transaction will officially go through.
According to ACCC commissioner Dr Philip Williams thier investigation found that Vocus concentrates on supplying large enterprise and government customers, whereas TPG focuses on the small and medium enterprise segment of the market.
Williams says Vocus will continue to face strong competitors including Telstra, Optus, Aussie Broadband, Superloop and managed service providers in supplying government, large enterprise, and SME customers
The ACCC determined that selling these assets and the customer base was unlikely to “lessen competition in any market.”
TPG Telecom’s CEO, Iñaki Berroeta, described the ACCC’s approval as “an important milestone towards completion of the transaction.”
“We are pleased to have passed this key regulatory step and are now focused on finalizing the deal later this year,” he said.
“This transaction plays a crucial role in our strategy to simplify the business, allowing us to streamline our operating structure and cost base more effectively and at a faster pace.”
The AUD 5.3 billion ($3.5 billion) deal encompasses TPG Telecom’s fibre network infrastructure, its enterprise, government, and wholesale fixed customer base, IT assets, international submarine cables, and Vision Network’s wholesale residential broadband business.
