Hutch says Vodafone merger will go aheadMay 19, 2009 - 1:24PM Hutchison Telecommunications Australia (HTA) Ltd says it has so far "weathered the storm" of the economic downturn, and remains confident its merger with Vodafone Australia will go ahead.
HTA, the owner of the 3 brand, has proposed a 50/50 merger with the local arm of Vodafone plc, which would see the creation of Vodafone Hutchison Australia (VHA).
The proposal requires the approval of the Australian Consumer and Competition Commission (ACCC), which is expected to deliver its decision on May 29.
Its decision was previously due earlier this month, but was pushed back as the ACCC sought further information from both parties.
"We have responded to the ACCC's statement of issues and their requests for information, in particular expanding on our view that the merger will deliver more competition, a better deal for customers and more investment in the mobile market," HTA chief executive Nigel Dews told the telco's annual general meeting on Tuesday.
The ACCC has previously stated concerns the joint venture may lead to increased prices in the mobile phone market.
It is also concerned existing network-sharing relationships between Vodafone and Optus, and Hutchison and Telstra, could lead to anti-competitive coordination under the joint venture.
The proposed merger has already received the support of HTA shareholders, Australia's Foreign Investment Review Board and the European Commission.
Meanwhile, Mr Dews described the year ahead for HTA as "exciting".
"While the economy continues to look vulnerable our latest analysis suggests we have weathered the storm well so far," he said.
"Our customers, while eagerly embracing our new innovative products are also very mindful of keeping costs down.
"We will continue to review the areas of potential impact and look for opportunities to grow the business."
Chairman Canning Fok told the meeting all indications in the year to date suggested that despite the current economic environment, 2009 will be another solid year.
Shareholders overwhelmingly approved the telco's remuneration report for 2008, which saw Mr Dews receive a 16 per cent pay increase from 2007.
Hutchison posted a net loss for calendar 2008 of $163.10 million, a 43 per cent improvement on the loss of $285.1 million made in 2007.
HTA shares were steady at 11 cents at 1245 AEST Tuesday
HTA Price at posting:
11.5¢ Sentiment: Buy Disclosure: Held
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