TPG Telecom shares gain as ACCC green lights Vocus deal
Make us a preferred source
Make us a preferred source on Google
More news: Shares in TPG Telecom gained in morning trade after the competition regulator cleared the way for its $5.25 billion divestment to Vocus Group.
TPG shares were up 3.2% to $4.70 at 11:35am AEDT.
ACCC says it will not oppose TPG's $5.25b Vocus deal
The news: The competition regulator said it will not oppose Vocus Group's proposed $5.25 billion acquisition of TPG Telecom's enterprise, government and wholesale business, announced in October.
The context: A review by the Australian Competition and Consumer Commission (ACCC) focused on how closely telcos Vocus and TPG compete in the supply of data network and connectivity services, including fixed-line internet services, to large enterprise and government customers.
The 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.
The ACCC said 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.
What they said: "Overall, we did not find that the acquisition would likely result in substantially lessening competition in any market," said ACCC commissioner Philip Williams.
The source: ASX
