Media Releases

Vocus seeks clearance to merge with M2

9 October 2015

The Commission has received an application from Vocus Communications Limited seeking clearance to acquire up to 100% of the shares and/or assets of M2 Group Limited.

Vocus is an Australian based telecommunications network owner which offers national and international backhaul through its 4,200 km fibre optic network in New Zealand. Vocus also offers a range of other telecommunications services to corporate, government and telecommunications customers.

M2 is also an Australian based telecommunications provider which in New Zealand offers consumer, business and wholesale services through its Slingshot, Orcon, 2Talk and CallPlus brands. M2 does not own a backhaul network in New Zealand.

A public version of Vocus’ application for clearance will be available on the Commission’s website shortly here.

The Commission welcomes submissions from interested parties who may have information relevant to our consideration of this application. Submissions should reference Vocus/M2 in the subject line and be addressed to registrar@comcom.govt.nz.

Background

Both M2 and Vocus are listed on the Australian Stock Exchange and the proposed acquisition will occur by way of Vocus acquiring 100% of the fully-diluted share capital in M2. Further details of the transaction and the Merger Implementation Agreement can be found here.
 
Backhaul is the term used to describe the transport of data between regional and national data aggregation points (such as telephone exhanges), and to the international gateways. Backhaul generally (but not always) involves the use of fibre optic cables.

When considering a proposed merger, the Commission must determine whether the competition that would be lost with the merger would be substantial.

We will give clearance to a proposed merger only if we are satisfied that the merger is unlikely to have the effect of substantially lessening competition in a market.

A fact sheet explaining how the Commission assesses a merger application is available on the clearances page.