Product details

By continuing to use our site you consent to the use of cookies as described in our privacy policy unless you have disabled them.
You can change your cookie settings at any time but parts of our site will not function correctly without them.

Abstract

In early 2021, Axiata Group Berhad (Axiata) and Telenor Asia (Telenor) revealed that both companies were in the advanced stages of discussion to merge their respective telecom units - Celcom Axiata Berhad (Celcom) and Digi.com (DiGi) in Malaysia. Post the merger, through a new entity called Celcom Digi Bhd, Axiata and Telenor world control equal stakes of 33.1%, while Celcom Digi Bhd would have approximately 19 million cell phone subscribers with combined revenue of around USD3 billion. Through this merger deal, Axiata and Telenor wanted to form a leading telecommunication company that would act as a driving force for research and innovation in the Malaysian market. According to experts, the deal came after the Malaysian government announced plans to build and manage its infrastructure for a 5G network by the end of 2021 instead of relying on private telecom companies. However, the high-profile merger between Axiata and Telenor had talks already failed once before in 2019 because of cross-border merger complexities. But with tough competition brewing to acquire the same set of consumers in the telecom market, the emergence of mobile virtual network operators (MVNO), downward pressure on data pricing, and burgeoning demand for connectivity and digital aspirations, both companies were compelled to return to the negotiation table again in 2021. But waiting for regulatory approvals and against the backdrop of the country's ambitious 5G roll-out plans, would the planned merger break down again, or would the two companies pull it off this time around?

Teaching and learning

This item is suitable for undergraduate, postgraduate and executive education courses.

Time period

The events covered by this case took place in 2019-2021.

Geographical setting

Region:
Asia
Country:
Malaysia

Featured companies

Axiata Group Berhad
Type:
Public company
Industry:
Telecom
Telenor ASA
Type:
Public company
Industry:
Telecom

Featured protagonists

  • Jørgen C Arentz Rostrup (male), EVP and Head of Telenor Asia
  • Izzaddin Idris (male), CEO, Axiata Group Berhad

About

Abstract

In early 2021, Axiata Group Berhad (Axiata) and Telenor Asia (Telenor) revealed that both companies were in the advanced stages of discussion to merge their respective telecom units - Celcom Axiata Berhad (Celcom) and Digi.com (DiGi) in Malaysia. Post the merger, through a new entity called Celcom Digi Bhd, Axiata and Telenor world control equal stakes of 33.1%, while Celcom Digi Bhd would have approximately 19 million cell phone subscribers with combined revenue of around USD3 billion. Through this merger deal, Axiata and Telenor wanted to form a leading telecommunication company that would act as a driving force for research and innovation in the Malaysian market. According to experts, the deal came after the Malaysian government announced plans to build and manage its infrastructure for a 5G network by the end of 2021 instead of relying on private telecom companies. However, the high-profile merger between Axiata and Telenor had talks already failed once before in 2019 because of cross-border merger complexities. But with tough competition brewing to acquire the same set of consumers in the telecom market, the emergence of mobile virtual network operators (MVNO), downward pressure on data pricing, and burgeoning demand for connectivity and digital aspirations, both companies were compelled to return to the negotiation table again in 2021. But waiting for regulatory approvals and against the backdrop of the country's ambitious 5G roll-out plans, would the planned merger break down again, or would the two companies pull it off this time around?

Teaching and learning

This item is suitable for undergraduate, postgraduate and executive education courses.

Settings

Time period

The events covered by this case took place in 2019-2021.

Geographical setting

Region:
Asia
Country:
Malaysia

Featured companies

Axiata Group Berhad
Type:
Public company
Industry:
Telecom
Telenor ASA
Type:
Public company
Industry:
Telecom

Featured protagonists

  • Jørgen C Arentz Rostrup (male), EVP and Head of Telenor Asia
  • Izzaddin Idris (male), CEO, Axiata Group Berhad

Related