Menu
Commerce Commission green-lights Infratil plan to buy Vodafone NZ

Commerce Commission green-lights Infratil plan to buy Vodafone NZ

Go-ahead given after regulator finds little threat to competition

$3.4 billion buyout passes first regulatory hurdle.

$3.4 billion buyout passes first regulatory hurdle.

The Commerce Commission has granted clearance for NZX-listed Infratil to acquire up to 50 per cent of the shares in Vodafone New Zealand.

Infratil already holds a 51 per cent share of Trustpower, which also sells telecommunications services. However, the comapny submitted that Vodafone and Trustpower would continue to operate as independent companies.

While the Commission accepts this is likely, it said analysis of the proposed acquisition was based on the "conservative assumption" that the businesses of Trustpower and Vodafone could be combined.

Vodafone and Canadian investor Brookfield announced their intention to bu the telco for $3.4 million in May.

The Commission then focused on the possible impact of the proposed acquisition in the national markets for the retail supply of broadband and mobile services.

Comcom chair Anna Rawlings said the Commission was satisfied Infratil’s proposed shareholding in both Vodafone and Trustpower would not substantially lessen competition in any of the markets it assessed.

“While Trustpower has in the past been an aggressive competitor in residential broadband, with a particular focus on energy and broadband bundles, several other multi-utility providers have similarly emerged including Vocus, Nova Energy and Contact Energy," she said.

2Degrees and Stuff are also competing effectively in the residential broadband market alongside Spark and MyRepublic, she said.

“As it stands, Vodafone and Trustpower are not each other’s closest competitors and even in regions where they would hold high market shares, such as Bay of Plenty and Wellington, they will continue to face effective competition from several other national operators."

Competition in mobile markets was generally driven by the three network operators and was therefore unlikely to be affected by Infratil’s acquisition.


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags VodafoneCommerce Commissioninfratil

Brand Post

Featured

Slideshows

The Kiwi channel gathers for the 2020 Reseller News Women in ICT Awards

The Kiwi channel gathers for the 2020 Reseller News Women in ICT Awards

Hundreds of leaders from the New Zealand IT industry gathered at the Hilton in Auckland on 17 November to celebrate the finest female talent in the Kiwi channel and recognise the winners of the Reseller News Women in ICT Awards (WIICTA) 2020.

The Kiwi channel gathers for the 2020 Reseller News Women in ICT Awards
Leading female front runners honoured at the 2020 Reseller News Women in ICT Awards

Leading female front runners honoured at the 2020 Reseller News Women in ICT Awards

The leading female front runners of the New Zealand ICT industry joined together for the annual Reseller News Women in ICT Awards event at the Hilton in Auckland, during which hundreds of guests celebrated 13 outstanding individuals who won awards, chosen from more than 50 finalists representing over 30 organisations.

Leading female front runners honoured at the 2020 Reseller News Women in ICT Awards
Channel gathers to celebrate the Reseller News Innovation Awards 2020 winners

Channel gathers to celebrate the Reseller News Innovation Awards 2020 winners

More than 500 channel leaders gathered in Auckland on 21 October at the ​Reseller News Innovation Awards ​2020 to celebrate the achievements of the New Zealand technology industry's top partners, start-ups, vendors, distributors and individuals.

Channel gathers to celebrate the Reseller News Innovation Awards 2020 winners
Show Comments