Telenor And Axiata Called Off Merger1 min read
It looks like telecom company rivals are not going to collaborate. Reportedly, Norwegian company Telenor and Malaysian company Axiata called off their merger due to some complications in the proposed transaction. The merger was supposed to serve 300 million people in 9 different Asian countries.
The equity of both companies would have been respectively 56.5% and 43.5%. For the last four months, both of the company were an inconsistent meeting regarding the merger.
According to the statement of Axiata Chairman Tan Sri Ghazzali Sheikh Abdul Khalid,
“Both of the companies were working to finalizing their transaction agreements within the third quarter of 2019. Due to some complexities involved in the proposed transactions, the parties have mutually agreed to end the discussions.”
“The board acknowledges the strong strategic rationale of the proposed transaction and is equally cognizant of the level of complexity of such a deal that extends across nine countries and 14 major entities.” He also added.
The statement doesn’t end the possibility of any future transaction, but it’s been called off for now.
Telenor has been operating in 13 different countries entire the whole globe, whereas Malaysian company Axiata has been operating in 11 different countries. Both of the telecom companies have more than 7 Billion consumers combinedly and there has always been a toe to toe competition in between both telecom companies. Asian market seemed to be the most lucrative market for both companies for which they went on a merger with some vast initiatives. But probably it’s going to cost a bit more time to see these giant companies merging.