TPG Receives Tick From US for Vodafone Australia Merger
By Chris Duckett, ZDNet
March 26, 2020
A month after the Federal Court of Australia approved the merger of TPG and Vodafone Hutchison, the transaction has received the tick of approval from US regulators. US approval was needed as one of TPG's subsea cables passes through the US territory of Guam.
“The company has received required consents from both the Committee for Foreign Investment in the United States (CFIUS) and the United States Federal Communications Commission (FCC),” TPG informed the ASX on Thursday morning.
“The consents permit the proposed change of control relating to TPG's submarine cable between Sydney and Guam. TPG is continuing to work towards meeting the remaining regulatory conditions so as to complete the merger with VHA in mid-2020.”
The transaction still needs to go before shareholders as well as receive a tick from the Australian Foreign Investment Review Board.
Once completed, the merger of the two companies under the TPG moniker would create a AU$15 billion entity.
Under the terms of the deal, the company will be owned 50.1% by Vodafone Australia shareholders and 49.9% by TPG shareholders, with current Vodafone chief Inaki Berroeta to serve as CEO and current TPG chief David Teoh serve to as chair.
Earlier this month, Vodafone Australia switched on its first 5G site in Australia.
Speaking in February, Berroeta said Vodafone would not be using the 700MHz spectrum that TPG purchased at an ACMA auction until the merger is completed. He also ruled out accessing that spectrum through a lease arrangement while the details of the merger are sorted out and the process is formally completed.