The merged entity will have six million customers
Vodafone and Hutchison Whampoa subsidiary Hutchison Telecommunications (Australia) have announced plans to merge their Australian telecommunications businesses, Vodafone Australia and Hutchison 3G Australia.
The companies will have equal ownership in the joint venture, which will be called VHA. Nick Read, CEO of Vodafone Asia-Pacific & Middle East Region will be the chairman of the company, and Nigel Dews, CEO of HTAL and H3GA, will be the CEO. Dave Boorman, CFO of Vodafone Australia will be CFO, and Russell Hewitt, chief executive of Vodafone Australia, will be a non-executive director.
The company will have six million customers and combined annual revenue of A$4 billion ($2.67 billion), close in scale to Australia’s top mobile companies, Telstra and Optus.
Vittorio Colao, chief executive at Vodafone, said: This transaction will benefit customers in Australia as it creates a company with the necessary scale to compete strongly in the mobile market. Customers can look forward to a wider portfolio of voice and data services, delivered under the Vodafone brand over a high-quality network, which through ongoing investment will bring 3G coverage to around 95% of the population. This is an important step in the transformation of the Australian mobile industry.
The transaction is expected to be completed by mid-2009.