The ACCC says it won’t oppose Vocus Communications’
(ASX:VOC) $861 million bid to acquire Nextgen Networks. However, the regulator will keep a close watch on the telcos industry from this point on.
This deal also includes the acquisition of two projects that are still in development – the North West Cable System and the Australia Singapore Cable.
The ACCC found that Vocus and Nextgen offered largely “complementary” services. The regulator also believed this acquisition won’t harm competition in the telco sector – as there is already stiff competition in this space from Telstra, Optus and TPG.
After this acquisition, Vocus plans to expand its connection points to the National Broadband Network from 68 to 112 out of a possible 121 nationwide NBN points of interconnect.
Vocus posted a net profit of $64.3 million on 30 June 2016.
