TPG share price: where next after the ACCC says it won’t appeal merger

'It is not for the ACCC or this court to engineer a competitive outcome,' Justice John Middleton said when initially handing down his decision on the TPG-Vodafone merger last month.

For TPG Telecom, it looks like we are now living in the second best possible world.

The best possible world of course would be one where the Australian Competition and Consumer Commission (ACCC) never opposed TPG’s proposed merger with Vodafone to begin with; but I digress.

Today the ACCC announced that they would not be appealing the Federal Court’s decision to allow the TPG-Vodafone merger to proceed.

‘The ACCC has concluded that it does not have grounds for appeal, which would require the ACCC to establish an error of law by the judge,’ the Regulator said in a media release today.

Rod Sims, Chair of the ACCC further said that the department remains ‘disappointed by this outcome, which has closed the door on what we consider was a once in a generation chance for increased competition in the highly concentrated mobile telecommunications market.’

Equity markets were anything but disappointed mind you: the TPG Telecom (ASX: TPM) share price was bid ~8% higher today – to $8.13 per share; while the Vodafone Hutchinson Australia (ASX: HTA) share price climbed 13%.

Moreover, as the Australian Financial Review's Chanticleer sharply wrote today:

‘This was not a case of a judge bereft of scepticism playing into the hands of oligopoloists. It was a case of an out-of-touch regulator trying to engineer a commercial outcome that could not survive court room scrutiny.’

For the merger to be fully finalised, a number of additional conditions must still be met, TPG noted in a media release last month, including 'approvals from other regulatory bodies, the Federal Court and TPG Telecom shareholders.’

TPG & Telstra share prices: winner takes all

Analysts had previously noted that should the ACCC appeal the Federal Court’s decision to allow the merger to go ahead, it would naturally be to Telstra’s benefit – given that it would allow Australia’s largest telco to further build-out its lead in the 5G space.

Indeed, while TPG-Vodafone is in a substantially better position as a merged entity, Telstra remains the dominant force in Australia’s telecommunications market.

As it stands, analysts do indeed favour Telstra over TPG.

Telstra currently has 10 Buy ratings, 3 Hold ratings and 3 Sell ratings; plus a 12-month price target of $3.94, according to Bloomberg Data.

By comparison, TPG has just 3 Buy ratings and 8 Hold ratings, against a 12-month price target of $7.86, according to Bloomberg Data.

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

Act on share opportunities today

Go long or short on thousands of international stocks with spread bets and CFDs.

  • Get full exposure for a comparatively small deposit
  • Trade on spreads from just 0.1%
  • Get greater order book visibility with direct market access

See opportunity on a stock?

Try a risk-free trade in your demo account, and see whether you’re on to something.

  • Log in to your demo
  • Take your position
  • See whether your hunch pays off

See opportunity on a stock?

Don’t miss your chance – upgrade to a live account to take advantage.

  • Trade a huge range of popular stocks
  • Analyse and deal seamlessly on fast, intuitive charts
  • See and react to breaking news in-platform

See opportunity on a stock?

Don’t miss your chance. Log in to take advantage while conditions prevail.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
Sell
Buy
-
-
-
-
-
-
-
-
-
-
Sell
Buy
Sell
Buy
-
-
China 300
-
-

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Sunday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.


For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of spread betting and CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.

Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money. Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.