Mobile phone networks giant Vodafone is extending its reach down under with the acquisition of TelstraClear, the New Zealand business of Telstra, the Australian telecommunications company.
Vodafone is paying NZ$840m to get its hands on New Zealand's second largest fixed-lined infrastructure network, which includes a 6,600 kilometre (km) fibre backbone connecting 19 of the country's largest cities. It also includes an extensive local access network with 2,000km of fibre and 4,500km of copper as well as a cable TV and broadband access network passing 150,000 homes in Wellington and Christchurch.
The acquisition still needs to be cleared by the New Zealand Commerce Commission, the Ministry of Business, Innovation and Employment and the Overseas Investment Office, but, all being well, the deal should go through in the fourth quarter of this year.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
According to Vodafone's bean counters, the integration of TelstraClear into Vodafone New Zealand - the country's largest mobile phone network operator - should create significant cost and capital expenditure savings from a combination of the two companies' networks, commercial operations and administrative functions.
"TelstraClear's infrastructure and capabilities are highly complementary to those of Vodafone New Zealand. The combined business will have the breadth and depth of resources and skills to meet our customers' long-term integrated communications needs," claimed Vittorio Colao, Vodafone's Group Chief Executive.
JH
-
8 of the best houses for sale for around £1 millionThis week: the best houses for sale for around £1 million – from a wing of a Grade II-listed Victorian manor house in Sunderland, to a brick-and-flint cottage in Cley next the Sea, Norfolk
-
Starling Bank to scrap 3.25% interest rate from popular current account within daysStarling is to remove the generous 3.25% it pays on current accounts from next week – what does this mean for customers and should you move?
