Firm acts on proposed $3bn M2 merger

One law firm has acted on the telco industry’s latest consolidation deal.

Allens has acted on the proposed $3bn M2 merger with Vocus Communications announced yesterday.

M2 Group and Vocus are currently the fourth and fifth largest telcos in the Australian market respectively.  Subject to ACCC and shareholder approval, the merger will create a stronger competitor to the top three Aussie telcos.

“It continues that theme of consolidation within the telecommunications sector; it follows mergers of Vocus and Amcom earlier this year, TPG and iiNet earlier this year,” said lead partner of the deal Mark Malinas.

Partners Robert Simkills and Fiona Crosbie lead alongside Malinas on the deal.

Allens, which acted on the M2 Group’s Call Plus Group acquisition earlier this year and for the company’s bid for iiNet in competition with TPG had corporate, competition and financing teams working on the proposed transaction.

With the introduction of the NBN, Malinas said he expects further consolidation in the telecommunications sector over the next 12 months.

“It will be subject obviously to competition constraints but with the NBN coming online and smaller players not being able to access that infrastructure it might create some more opportunities for further consolidation down the track,” he said.

“The telecommunications industry is dynamic and evolving quickly. 

“We see there being more opportunities for mergers and acquisitions in the Asia Pacific market over the next 12 months.”

The merged company would reportedly become the third largest telco in New Zealand, combined with Australia making an estimated $1.8bn in revenue each year.

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