Vodafone Takes Over Telstra’s NZ Biz

Vodafone has been approved to take over the New Zealand operations of Telstra. The takeover costs about NZ$840 million or about $666 million.

According to the Commerce Commission, the competition regulator of New Zealand, has given its approval to Vodafone to acquire the internet and fixed-line phone business of TelstraClear. This also means that Vodafone has been given the green light to compete with industry leader Telecom New Zealand.

Prior to the approval, the Commerce Commission made several reviews on the purchase’s impact in the market and if this would lessen industry competition.

Mark Berry, chairman of the Commerce Commission, said the body is satisfied with Vodafone’s proposed acquisition. He added that it is unlikely the acquisition would lessen competition in the concerned markets.

Vodafone’s acquisition of the internet and fixed-line phone operations means Vodafone has a 30-percent market share. Telecom New Zealand controls about half of the market.

For consumers, it means that there are now two companies that offer a full range of services on fixed line, mobile, and internet services. Consumers are hoping that this would lead on lower prices for these services.