Vocus moves a step closer to being able to buy TPG's fibre assets

Vocus has been cleared by the competition watchdog to buy TPG Telecom’s fixed-line business, transmission network and enterprise customer base in a $5.25 billion deal.

The deal must still meet other conditions, including Foreign Investment Review Board approval and US regulatory approvals, to go through.

The agreement between Vocus and TPG was struck late last year after an earlier purchase attempt fell through.

The Australian Competition and Consumer Commission (ACCC) commenced a review of the deal a month later.

The commission has now said it won’t oppose the purchase, finding that TPG and Vocus each served adjacent market segments.

“Our 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,” ACCC commissioner Dr Philip Williams said in a statement.

Williams added that post-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.”

The ACCC was of the view that the asset and customer base sale was unlikely to “lessen competition in any market”.

TPG Telecom’s CEO Iñaki Berroeta said the ACCC’s clearance “marks an important milestone towards completion of the transaction.”

“We are pleased to have passed this important regulatory milestone and are now focused on completing the transaction later this year,” he said.

“This transaction forms an important part of our strategy to simplify our business and accelerate and increase the streamlining of our operating structure and cost base.”