The Malaysian Communications and Multimedia Commission (MCMC) has approved the proposed merger between Digi.Com Bhd (Digi) and Celcom Axiata Bhd (Celcom).
As Digi and Celcom are Malaysia’s second and third largest mobile service operators to date, the merger will result in the formation of the country’s largest mobile service operator, MCMC said in a statement today.
“As such, MCMC has conducted a thorough assessment of the merger,” it said.
On April 1, the commission issued a statement of issues to Digi and Celcom in accordance with the merger guidelines for the said application of merger and acquisition dated May 17, 2019, to address concerns that the merger would or was likely to significantly reduce competition.
In response, the applicants submitted an undertaking containing their commitment to addressing the competition issues highlighted by MCMC in the statement of issues.
“MCMC has considered the commitment offered by the applicants and is satisfied that it will significantly reduce the competition issues that will or may arise as a result of this merger,” it said.
Axiata and Telenor Group announced on April 8, 2021 that they were discussing the proposed merger between Celcom and Digi to form a new entity known as MergeCo.
They said it was expected to be completed in the second half of 2022.