Good evening,

There’s nothing coincidental about the timing of 2degrees and Orcon’s merger talks.

Sources say the companies’ owners – Canada-listed Trilogy International Partners and Macquarie’s MIRA – realised the pairing is a logical combination and got a look at each other’s books as they progressed their respective floats.

While the talks are at an early stage, the merger would create a $2.5 billion-odd company with about $1 billion in annual revenue and north of $200 million in earnings before interest, tax, depreciation and amortisation, before synergies.

The hope is the combination will form a significant third player capable of taking on Vodafone NZ and Spark.

It’s bringing back all the memories of TPG Telecom and Vodafone Australia’s $16.5 billion merger.

Elsewhere, GQG has all but secured its ASX berth; suitors are circling global investment giant Blackstone’s NZ retirement village business Arena Living; EBR Systems settles on $344 million valuation for upcoming float; and electrical distributor IPD Group is heading to the ASX.

Happy reading,
Anthony Macdonald, Yolanda Redrup and Kanika Sood
Street Talk editors