Why investors rang up the TPG share price by 10% today

The share market rang up the TPG Telecom Ltd (ASX:TPM) share price by 10% today after a positive appeal against the ACCC.

| More on:
City skyline with building connected by graphic lines and the word 5G

Image source: Getty Images

The TPG Telecom Ltd (ASX: TPM) share price was rung up by more than 10% after the telco received the news about its appeal to merge with Vodafone Australia.

The appeal decision

The Federal Court decided that a merger between TPG and Vodafone Australia would not lessen competition in the mobile market, so therefore the merger should be allowed to go ahead.

It’s not 100% confirmed because it still requires regulatory approval, and the ACCC has 28 days to appeal the decision. Although ACCC boss Rod Sims’ statement didn’t convey the message that the decision would be challenged, “Australian consumers have lost a once-in-a-generation opportunity for stronger competition and cheaper mobile telecommunications services with this merger now allowed to proceed.”

How did Vodafone Australia and TPG respond?

The share price of Hutchison Telecommunications (Aus) Ltd (ASX: HTA), which owns half of Vodafone Australia, rose by 14.3% today.  

Vodafone Hutchison Australia CEO Inaki Berroeta said: “We have ambitious 5G rollout plans and the more quickly the merger can proceed, the faster we can deliver better competitive outcomes for Australian consumers and businesses.”

The initial 650 5G sites will be located in Sydney, Melbourne, Brisbane, Adelaide, Perth, Canberra and the Gold Coast.

It is hoped that the merger will be completed by mid-2020 if things go according to schedule.

TPG Executive Chairman David Teoh said: “TPG is very pleased with the Federal Court decision and looks forward to combining with VHA to create Australia’s newest fully integrated telecommunications operator. We will work to finalise the other conditions to the merger as soon as possible.”

Is TPG a buy?

With the TPG share price going up 10% today and up 15.7% over the past month, I think the quick money has been made. There are attractive synergies from the combined business, and bigger dividends, but we don’t know a lot about how profitable 5G will be for the telcos yet, so I wouldn’t jump to buy this week.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of January 12th 2022

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Gainers

a man looks down at his phone with a look of happy surprise on his face as though he is thrilled with good news.
Share Gainers

Why Beach, Jumbo, Premier Investments, and Western Areas are pushing higher

In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record another disappointing decline. At the time of …

Read more »

A man in a blue collared shirt sits at his desk doing a single fist pump as he watches his Neometals shares rising on his laptop
Resources Shares

Why is the BHP (ASX:BHP) share price leaping ahead today?

The S&P/ASX 200 Index (ASX: XJO) has unfortunately slipped into negative territory so far this Thursday, after an initially strong market …

Read more »

Businessman in suit and holding a briefcase jumps into the sky celebrating the rising Enero share price
Share Gainers

‘Exclusive provider’: Genworth (ASX:GMA) share price leaps 12% on CBA deal

Key points Genworth is cruising today following a company announcement The company has been selected as the exclusive provider of …

Read more »

A group of people cheer at a blackjack table in a casino
Share Gainers

Why the PointsBet (ASX:PBH) share price is rocketing 9% today

Key points The online gambling market continues to grow West Virginia becomes the third US state to host PointsBet’s online …

Read more »

Rising share price chart.
Share Gainers

Why A2 Milk, Baby Bunting, Codan, and Sezzle shares are surging higher

In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record another very disappointing decline. At the time of …

Read more »

Three excited business people cheer around a laptop in the office
Share Gainers

Why Corporate Travel Management, Goodman, Lendlease, and Uniti shares are rising today

The S&P/ASX 200 Index (ASX: XJO) is out of form again on Monday. In afternoon trade, the benchmark index is down 0.5% …

Read more »

A man wearing glasses sits back in his desk chair with his hands behind his head staring smiling at his computer screens as the ASX share prices keep rising
Share Gainers

Why is the Uniti (ASX:UWL) share price up 10% on Monday?

Key points The Uniti share price is trading 10% higher today following its latest update Multiple approaches have been made …

Read more »

A man and woman put hands in the air as they dance in front of a green brick wall.
Share Gainers

These were the best performing ASX 200 shares last week

It certainly was a week to forget for the S&P/ASX 200 Index (ASX: XJO). A major selloff on Friday led to …

Read more »