The New Zealand Commerce Commission has approved Vodafone New Zealand’s purchase of TelstraClear today.
After deferring the decision last week, the competition regulator announced that it did not find any significant business overlap between Vodafone…
The New Zealand Commerce Commission has approved Vodafone New Zealand’s purchase of TelstraClear today.
After deferring the decision last week, the competition regulator announced that it did not find any significant business overlap between Vodafone NZ and the local fixed line and IT services provider.
“In reaching its decision, the Commission considered that the merged entity would continue to face competition from Telecom, as well as Orcon, Slingshot and other smaller businesses in providing fixed line voice and broadband services to residential and small business customers,” said Commerce Commission chair Dr Mark Berry in a statement.
Vodafone will not acquire all of TelstraClear’s radio spectrum, the statement added. Some will be transferred to TelstraClear’s parent company, Telstra Corporation, to be sold to other telcos.
“As a result, the Commission is satisfied that the proposed acquisition would be unlikely to substantially lessen competition in any of the relevant markets,” said Berry.
TelecomFinance reported the proposed NZ$840m (US$663m) deal back in July, which Vodafone NZ said would make them “ideally positioned to capture the benefits of the structural changes underway in the New Zealand market.”
Vodafone NZ hired UBS to advise on the transaction, while New Zealand’s Bell Gully provided legal advice.
