MCMC gives approval for Celcom-Digi merger

by AZREEN HANI/ Graphic by M ZUKRI

The Malaysian Communications and Multimedia Commission (MCMC) has issued a notice of no objection to the proposed merger between Digi.Com Bhd. and Celcom Axiata Bhd. (“Celcom”) which involves Digi Telecommunications Sdn. Bhd. (Digi) and Celcom (the Applicant).

MCMC said in a statement today that the commission has conducted a thorough assessment on this merger considering both telcos are the second and the third largest telcos in the country.

This merger will produce  the largest mobile service operator in Malaysia. 

On April 1, 2022, MCMC issued a Statement of Issues to both telcos in accordance with the Merger and Acquisition guidelines dated May 17, 2019 to address concerns that this merger will or is likely to reduce
significant competition in the market.

“The Applicant has submitted an undertaking that contains the Applicant’s commitment to addressing competition issues which has been highlighted by the MCMC in the Statement of Issues. MCMC
has considered the commitment offered by the Applicant and is satisfied that it will significantly reduce the competition issue that will or may arise as a result of this merger,” MCMC said.

A copy of the undertaking can be downloaded from the MCMC website at of-Public-Version.pdf

On April 28, Axiata Group Bhd said it expects a proposed merger between Celcom Axiata Bhd and Bhd to form a new entity known as MergeCo is expected to be completed in the second half of 2022 (2H22).

In a stock exchange filing to Bursa Malaysia, Axiata said the completion of the transaction will be subject to the approval of the shareholders of both the company and DiGi, as well as regulatory approvals and other terms and conditions.

Axiata and Telenor Group had previously announced on April 8, 2021, that they were in advanced discussions to undertake a merger of the telco operations of Celcom and DiGi.

On Nov 24, 2021, Axiata also announced that MergeCo had initiated engagement with the Malaysian Communications and Multimedia Commission for the merger assessment process in relation to the proposed merger.