(Reuters) – Australia’s competition watchdog on Thursday approved telco Vocus’ A$5.25 billion ($3.34 billion) takeover of local rival TPG Telecom’s enterprise, government and wholesale fixed business and fibre network assets.
The review by the Australian Competition and Consumer Commission (ACCC) focused on how closely Vocus and telecom giant TPG fight for market share in data network and connectivity services.
The probe revealed that Vocus focuses on providing services to large enterprise and government clients while TPG concentrates on the small and medium enterprise segment of the market.
“After the acquisition, 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,” ACCC commissioner Philip Williams said.
TPG Telecom in a statement welcomed the move by the regulator and said the deal formed an important decision in the firm’s strategy to simplify its business and streamline its cost base.
Vocus did not immediately respond to a Reuters request for comment.
($1 = 1.5721 Australian dollars)
(Reporting by Rishav Chatterjee in Bengaluru; Editing by Alan Barona)
