Vodafone merger
VODAFONE is merging its operations in Australia with those of 3 owner Hutchison Whampoa in a move that could signal a deal between the two closer to home.
Respectively the third and fourth largest mobile phone operators Down Under, the two will combine to form VHA with six million customers.
The enlarged business will be a challenger to bigger rivals SingTel Optus and Telstra, in a country where there are more mobile phones than people and opportunities for growth are limited.
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It is the first major overseas deal by Vodafone’s new chief executive Vittorio Colao.
But it has triggered speculation that it could be the forerunner to a deal in the UK where Hong Kong-based Hutchison’s loss-making 3 is seen as ripe for a takeover.
Both Vodafone and Germany’s T-Mobile have been tipped as possible buyers.
Broker Investec Securities said the Australian deal suggested Hutchison was examining its strategy and could look for a merger partner for its UK operations.