TPG, Vodafone merger blocked

TPG Telecom shares have crashed along with those of Vodafone’s local joint venture partner after the competition watchdog blocked the communications giants’ $15 billion merger.

The Australian Competition and Consumer Commission was due to announce its decision today, but inadvertently published the information on its mergers register briefly yesterday afternoon.

Shares in TPG closed 98 cents, or 14 per cent, lower at $6.04, while those in Hutchison Telecommunications – Vodafone’s local partner – dropped as much as 37.5 per cent before closing down 28 per cent at 1.5 cents.

The ACCC did not immediately give the full reasoning for its decision but said it would publish more information shortly.

Neither company made any announcement to market other than to relay the ACCC statement.

The consumer watchdog had been reviewing the proposed merger since September.

But it already said in December that the merger would diminish competition by removing TPG as an independent competitor, and asked for further submissions on the matter.