Hutchison Telecom, Vodafone To Merge Australia Telecoms

Vodafone Ltd. (VOD) and Hutchison Whampoa Ltd. (0013.HK) said Monday they will merge their Australian telecommunications businesses in a 50:50 joint venture.

The joint venture, 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.

The move will create a mobile operator with around six million customers and total combined revenues of around A$4 billion as at the 12 months ended June 30, 2008.

The venture will be chaired by Nick Read, current chief executive of Vodafone Asia-Pacific and Middle East, while current chief executive of Hutchison Australia, Nigel Dews, will be chief executive of the combined group.

VHA will market its products and services under the Vodafone brand, but will retain exclusive rights to use Hutchison's "3" brand in Australia.

In recognition of the value difference between the two businesses, Vodafone will receive a deferred payment of A$500 million from VHA.

-By Rachel Pannett, Dow Jones Newswires; 61-2-6208-0901; [e-mail]