It's Official: Celcom And Digi To Join Forces To Become Malaysia’s Largest Telco

However, things are going to get more interesting in the near future.

On Monday, Astro Awani reported that Celcom and Digi are set to merge to become the country’s largest telecommunications company.

This reveal was made following Axiata Group Berhad and Telenor Group’s announcement about the merger, which will result in a new entity called MergedCo.

Telenor is the parent company of Digi and Axiata is Celcom’s.

This merger will have a big impact on the Southeast Asian and South Asian markets for both companies and will see Telenor as the majority shareholder with an estimated 56.5 per cent ownership stake while 43.5 per cent will be held by Axiata.

In a statement to Bursa Malaysia, Axiata said both parties will finalise their agreement in the third quarter of 2019.

The merger of both telcos, which is expected to be completed in the fourth quarter of this year, will generate a combined revenue of RM50 billion, while the pre-tax profit (EBITDA) is set to reach RM20 billion.

The merger is expected to be completed in the fourth quarter of this year, while the process for obtaining authorisation from the authorities, including Bursa Malaysia, is underway.