Vocus-TPG Telecom $3.5B deal passes final regulatory hurdle in Australia
Vocus has received the final regulatory approval from Australia's Foreign Investment Review Board (FIRB) for its proposed acquisition of TPG Telecom's fiber network assets and Enterprise, Government and Wholesale (EGW) fixed infrastructure business.
First announced in October 2024, the deal is valued at 5.25 billion Australian dollars (US$3.54 billion) and includes the sale of TPG Telecom's Vision residential wholesale broadband business.
Three months ago, the deal was cleared by the Australian competition regulator, the Australian Competition and Consumer Commission (ACCC).
Vocus announced on Monday that the FIRB confirmed there are no objections to the acquisition under the Foreign Acquisitions and Takeovers Act of 1975.
"This clearance represents the final Australian regulatory approval required for this transaction and we will continue to work towards finalising the remaining conditions precedent," the Macquarie-backed company said in a statement.
TPG Telecom also confirmed that its deal with Vocus passed the final regulatory hurdle in a stock exchange filing on Monday.
The completion of the transaction is subject to the satisfaction of other conditions, including the completion of an internal restructuring. The transaction is expected to close before the end of the year.
Key digital infrastructure operator
The acquisition of TPG Telecom's fiber network assets and EWG fixed infrastructure business will position Vocus as a key digital infrastructure operator in Australia.
Upon completion of the acquisition, fiber specialist Vocus will operate a network comprising more than 50,000km of fiber, which is either owned or leased under long-term right-of-use agreements. The network will also include nearly 15,000km of international submarine cables and close to 20,000 connected buildings.
Vocus, owned by Macquarie Infrastructure and Real Assets (MIRA) and pension fund Aware Super, will also acquire TPG's PPC-1 submarine cable running from Sydney to Guam. The cable will complement Vocus' existing Australia-Singapore cable, the North-West Cable system, the Darwin-Jakarta-Singapore cable system and the Pacific Connect cable system under construction.
Meanwhile, TPG Telecom plans to use the net cash proceeds from the sale to fund future capital management and business investment initiatives. These initiatives are still evolving, so the details have not yet been finalized.
