Vodafone and its competitor in many markets, Hutchison’s Three, are joining forces in Australia. Despite the fact that Vodafone is stronger of the two carriers, the new company will be formed as a 50/50 joint venture and will be called VHA. However, to compensate for the value difference, Vodafone will receive a deferred payment of AU$500 million from VHA, as well as an additional brand licensing fee of 1% of service revenues from VHA.
The transaction is expected to close by mid-2009 once all the interested parties approve the deal. The parties include Hutchison shareholders, Australia’s Foreign Investment Review Board and Competition and Consumer Commission.
[Via: MobileBurn]