Vodafone and Hutchison Telecommunications (Australia) Limited (“HTAL”), a listed subsidiary of Hutchison Whampoa Limited (“Hutchison Whampoa”), announced today an agreement to merge their telecommunications businesses in Australia, Vodafone Australia Limited (“Vodafone Australia”) and Hutchison 3G Australia Pty Limited (“H3GA”), which delivers its mobile services under the “3” brand. Both Vodafone and HTAL will have an equal ownership of 50% in the joint venture, which will be renamed VHA Pty Limited (“VHA”). VHA will market its products and services under the Vodafone brand, but will retain exclusive rights to use the 3 brand in Australia during a transition period and thereafter. To equalise the value difference between the respective businesses, Vodafone will receive a deferred payment of A$500 million from VHA.
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