Regent Logo

Mergers and Acquistions News

Categories: Telecoms

February 9th 2009, 15:52PM

Vodafone and Hutchinson Whampoa have agreed to merge their telecommunications operations in Australia.

Hutchinson Telecommunications - a subsidiary of Hutchinson Whampoa - and Vodafone Australia will now service mobile users down-under in a new joint venture called VHA.

As part of the deal, Vodafone receives $500 million Australian dollars (£226 million) to make up the respective values of the two firms’ businesses.

The deal creates a new mobile operator targeting a consumer base of approximately six million.

Combined, the two companies 3G coverage will be able to reach 95 per cent of the population - for the 12 months leading up until June 30th 2008 total revenues for the two groups exceeded $4 billion Australian dollars.

Reacting to the deal, Vittorio Colao, chief executive of Vodafone, comments: "This transaction will benefit customers in Australia as it creates a company with the necessary scale to compete strongly in the mobile market.

"This is an important step in the transformation of the Australian mobile industry."

Vodafone has had a busy few weeks in the mergers and acquisitions sector as last month it acquired Wayfinder and sealed a strategic partnership with du.
ADNFCR-1833-ID-19015896-ADNFCR

 

Related News