Hutchison’s Telecommunications (Aus) Ltd [ASX:HTA] share price jumped 33.33% in trading today, after confirming media speculation this morning of a potential merger between Vodafone Hutchinson Australia (VHA) and TPG Telecoms.
Hutchinson’s have a 50% interest in VHA, hence the reason for the spike in share value.
The company’s shares are currently trading at 10 cents, up 4 cents from yesterday’s closing price.
Potential merger between Vodafone and TPG
The two companies are very complimentary to one another. Vodafone is the third largest player and TPG is fourth, both behind Telstra and Optus for number of subscribers.
TPG holds more ground in the in the home broadband market, while Vodafone has a stronger position in the mobile market.
Although there is no certainty as to whether a transaction will eventuate, the potential merger between the two rivals is anticipated to be a force to reckon with.
An update by VHA stated that:
‘Vodafone confirms it has commenced discussions with TPG in relation to a potential combination of the two highly-complementary companies. At this stage, these are exploratory non-binding discussions, with no commitment from VHA or its shareholders.’
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