Industry analysts are reading the Malaysian Communications and Multimedia Commission’s June no-objection statement and the Securities Commission Malaysia’s clearance as the removal of the two most significant regulatory hurdles for the proposed merger between Axiata Group and Telenor ASA. The deal, announced last year, involves the combination of their local units, Celcom Axiata and DiGi.Com, to form a new entity called Celcom Digi.
Structural Analysis of the Transaction
According to the statement released by Telenor on Thursday, the clearance from the Securities Commission Malaysia is a key procedural step. The transaction’s completion now hinges on approval from Bursa Malaysia and the shareholders of both Axiata and Digi. Telenor has indicated that the deal is expected to close by the end of the year.
Two sources with knowledge of the deal, who spoke on the condition of anonymity to a news agency last year, valued the combined entity at an enterprise value of $15 billion. This valuation places the merger among the largest telecommunications consolidations in the region. The parent companies, Axiata Group and Telenor ASA, plan to each own 33.1% of the new Kuala Lumpur-listed company.
Market Positioning and Financial Metrics
The merger unites Malaysia’s second and third largest mobile services providers. Axiata and Telenor have previously stated that the combined operation will serve approximately 19 million subscribers and generate annual revenue of roughly $3 billion. This scale positions Celcom Digi as the market leader by subscriber count in a competitive Malaysian telecommunications landscape.
Facing stiff competition in the local market, the two firms structured the deal to consolidate resources, reduce operational duplication, and improve network investment capacity. The union creates a single entity with a stronger balance sheet to compete against existing rivals.
Regulatory and Shareholder Timeline
The regulatory path has been methodical. The Malaysian Communications and Multimedia Commission issued its no-objection statement in June. The Securities Commission Malaysia clearance followed this week. The final approvals required are from Bursa Malaysia and the shareholders of Axiata and Digi.
Investors and market participants will now focus on the shareholder voting schedule and the timeline for Bursa Malaysia’s listing approval. The deal’s closure by year-end remains the stated target, contingent on these remaining procedural steps being completed without delay.
What to watch next: The shareholder meetings for both Axiata and Digi will be the next major milestone. Market observers will also monitor the integration plan for the two networks and customer bases, as well as any potential conditions Bursa Malaysia may impose on the listing of the new entity. The final ownership structure, with both parent companies holding equal stakes, will also be scrutinized for governance and strategic alignment in the post-merger period.
