Federal Court approves TPG’s acquisition of iiNet
The Federal Court of Australia today approved TPG's AUD$1.56 billion acquisition of iiNet. TPG will take ownership of iiNet at the close of trading on August 24, and iiNet shares will be suspended from trade at the same time.
The news follows the Australian Competition and Consumer Commission's (ACCC) approval of the purchase. While the ACCC previously raised concerns, it said that the effects would not be substantial enough to require intervention
"While the ACCC was concerned that the acquisition of iiNet by TPG may lessen competition in the retail fixed broadband market, particularly in the short term, the ACCC concluded that this would not reach the threshold of a ‘substantial’ lessening of competition as required under section 50 of the Competition and Consumer Act," said ACCC Chairman Rod Sims.
95.09% of iiNet shareholders voted in favour of the takeover. After implementation, the acquisition will see TPG overtake Optus as Australia's second biggest broadband provider with over 1.7 million customers.
Australian Communications Consumer Action Network CEO Teresa Corbin previously told CyberShack that she doesn’t believe the acquisition will necessarily have a large effect on iiNet subscribers in the short term.
"We don't think there will be significant impact initially," said Corbin. "iiNet has a very good name, it has a very strong customer base, and I think those customers are known to be quite active and vocal. It would be in TPG's interest to continue the products and services as they are."