The Commerce Commission has received a clearance application from Connexa Limited (Connexa) to acquire certain passive mobile telecommunications infrastructure assets from Two Degrees Networks Limited and Two Degrees Mobile Limited (2degrees).
Connexa is owned 70% by the Ontario Teachers' Pension Plan Board (OTPP) and 30% by Spark New Zealand Trading Limited (Spark). Following an acquisition in October 2022, it owns almost all of the passive mobile telecommunications assets previously owned by Spark. Connexa now provides 'passive' infrastructure services to Spark under a long-term contract.
2degrees is a New Zealand telecommunications service provider and, along with Spark and Vodafone, is one of three mobile network operators in New Zealand. It is ultimately owned by Macquarie Asset Management and Aware Super Pty Ltd, as trustee for Aware Super.
With the proposed acquisition, Connexa will acquire assets including leases, licences and other property rights, as well as infrastructure located on 2degrees' sites such as towers, masts, poles and fences. Connexa and 2degrees will enter into a long-term agreement under which Connexa would provide infrastructure services to 2degrees.
A public version of the clearance application will be available shortly on the Commission's case register.
Background
'Passive' mobile telecommunications infrastructure comprises the structures capable of hosting 'active' telecommunications assets. It can include underlying land interests, as well as physical structures such as towers, poles and fencing, as well as power systems and electricity connections. 'Active' infrastructure is the infrastructure on which mobile network operators run their mobile networks including antennae, cabinets, radio units, backhaul electronics and electricity meters.
The Commerce Commission will give clearance to a proposed merger if it is satisfied that the merger is unlikely to have the effect of substantially lessening competition in a market.
