Under a A$15bn ($11bn; £8bn) merger Vodafone Hutchison Australia and TPG Telecom will create a mobile, fixed-line and broadband provider with the scale to rival Telstra and Optus.
Vodafone Australia, owned by Hong Kong-based CK Hutchison and Vodafone Group, will have a majority 50.1% stake.
TPG will hold the remainder of TPG Telecom Limited, which will be listed on the Australian Securities Exchange.
“The combination of the two companies will create an organisation with the necessary scale, breadth and financial strength for the future,” Vodafone Hutchison Australia’s chief executive Inaki Berroeta said in a statement.
“The equal terms of the combination preserves the competitive strengths of the two businesses, meaning a sustainable long-term fixed/mobile competitor to Telstra and Optus.”