Vodafone Hutchison Australia and TPG Telecom have entered talks on a possible merger of equals. The negotiations were confirmed by TPG and Hutchison following media speculation.
The deal would combine the largely fixed assets of TPG with the VHA mobile business. VHA is a 50-50 joint venture of Hutchison and Vodafone that operates under the Vodafone name. It is the third-largest mobile operator, after Telstra and Optus.
TPG has grown through a series of acquisitions, such as iiNet, Internode and AAPT, to become a major broadband provider in Australia and also recently launched as a mobile operator in Singapore. The company has also been preparing to launch its own mobile network in Australia. A merger with Vodafone would eliminate the threat of a fourth carrier and strengthen Vodafone's position.
