TPG's merger strategy must focus on potential merger undertakings if it is to swing the ACCCs concerns

The ACCC has extended its decision time for the proposed TPG-VHA merger and has raised preliminary concerns that it will lead to a substantial lessening of competition

TPG has announced that it has ceased the rollout of its mobile network

In the absence of a merger TPG’s future options makes the ACCC decision still line ball

This brings the focus of the merger to the potential deal options

Comparison of key metrics

On 30 August 2018, TPG and VHA formally announced their plans to merge to create a third full service telco provider in Australia with a combined enterprise value of A$15bn, pro forma revenue of A$6bn and EBIDTA A$1.9bn. Shareholding is split 50.1% VHA - 49.9% TPG, with David Teoh to be non-executive chairman and Vodafone's current CEO Iñaki Berroeta to be chief executive and managing director. However, following the ban on Huawei equipment, TPG has announced that it will cease the rollout of its mobile network. With the ACCC extending its decision time on the merger we examine the potential future options for TPG in case of a no merger decision.

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