Business

Planned 2degrees and Orcon Group merger taking shape before deal settled, approved

14:03 pm on 3 February 2022

The planned merger between telcos 2degrees and Orcon Group is already taking shape even before the deal has been settled and approved.

Photo: Supplied.

Vocus Communications chief executive Mark Callander will lead the merged company to be known as 2degrees, which was New Zealand's third largest telco brand with 1.5 million customers.

Callander said the 2degrees brand was well established and respected.

"Pending regulatory approvals and satisfaction of other conditions, the integration and growth of the companies for the post completion period will be focused on continued innovation and service excellence," Callander said.

2degrees current chief executive Mark Aue would remain with the business until completion of the merger and work on the integration of the two groups.

In the meantime it would be business as usual for all brands, which include Slingshot and Orcon.

Australian fund managers Macquarie Asset Management and Aware Super, as the owners of Vocus Group and its New Zealand subsidiary Orcon, have agreed to buy 2degrees from its US owners and merge with the two operations.

The deal needs the approval of the Commerce Commission to ensure the merger does not reduce competition in the telecommunications sector.