Telstra has sold its New Zealand subsidiary TelstraClear to Vodafone New Zealand for $NZ840 million.
The two telecommunications heavyweights had been in negotiation since June.
As TelstraClear is one of New Zealand’s largest full-service communications companies, analysts have speculated that the deal could threaten the market dominance of Telecom New Zealand.
In the deal, Vodafone New Zealand gets TelstraClear’s voice and data-based services, network infrastructure, and New Zealand customer base.
That equates to roughly 270,000 customers that Vodafone will acquire from the former second-largest fixed-line provider in the country.
It will also receive TelstraClear’s extensive fibre network.
The transaction was “consistent with Telstra’s overall strategy and capital management framework that we outlined in April”, said Telstra chief executive David Thodey.
“The deal is a natural one, bringing together TelstraClear’s fixed telecommunications and data products and corporate client base with Vodafone New Zealand’s mobile offering and retail customer base,” he added.
The sale is contingent on New Zealand regulatory approval, which could take months.