ACCC Won't Oppose Vodafone, Hutchison Australia Mobile Merger

The Australian Competition and Consumer Commission said Friday it won't oppose the merger of Vodafone Ltd. (VOD) and Hutchison Whampoa Ltd.'s (0013.HK) Australian mobile operations.

The agency, which spent three months investigating the matter, concluded such a merger is unlikely to substantially reduce competition.

Absent the merger, the ACCC said the parties would be unlikely to sustain significant investment in their mobile networks.

Analysts have said the move will give the market's number three and number four players - both already fast-growing innovators - the scale to claw more market share from the largest mobile operator, Telstra Corp. (TLS), and market number two, Singapore Telecommunications Ltd.'s (Z74.SG) Optus.

The joint venture announced in February, between Vodafone's Australian unit Vodafone Australia Ltd. and Hutchison 3G Australia Pty. Ltd., a unit of Hutchison Telecommunications (Australia) Ltd. (HTA.AU), will be renamed VHA Pty. Ltd.

-By Cynthia Koons, Dow Jones Newswires; 61-2-8272-4691; [e-mail]