Asia Merger talks called off for Axiata and Telenor
Axiata and Telenor merger would have presence in nine countries combined
Axiata Group, Malaysian telecommunications operator, and Norway’s Telenor have ended negotiations to merge holdings in Asia.
The agreement would have established Southeast Asia’s most significant telecommunications business to compete with Singapore Telecommunications. “Both sides have decided collectively to conclude the conversations due to some complexities engaged in the suggested operation,” Axiata stated in a declaration.
Malaysian mobile service provider Digi.com, where Telenor is the biggest shareholder, said that with the robust economic rationale for merger still being account, the two businesses “should not leave out the possibility of a potential future merger.” Telenor and Axiata stated earlier that the primary reason for the merger was the increase in capital expenditure for the network and the new 5G technology. They said the merger would have provided up to approximately $5 billion of price synergies by consolidating resources and economies of scale.
Axiata runs phone facilities in Malaysia, Indonesia, Sri Lanka, Bangladesh, Cambodia and Nepal, with 37% shares held by the Khazanah Nasional State Fund.
Telenor is active in Thailand, Malaysia, Bangladesh, Myanmar and Pakistan. 53% of its income originated from the Asian economies last year.
The suggested merger organisation has established itself as the region’s most significant telecommunications business, with a total annual turnover of 12 billion dollars and a net profit of almost 1 billion dollars.
The businesses stated the new organisation would be the largest operator in six of its nine industries, the second in two, and the fifth in one.