Telenor and CP Group discuss $ 7.5 billion Thai telecom merger, Telecom News, ET Telecom

By Terje Solsvik

OSLO: Norwegian Telenor and Thailand’s Charoen Pokphand Group (CP Group) are considering a merger of their telecommunications units in Thailand, which could become the Norwegian company’s second multibillion-dollar merger in Southeast Asia this year .

A deal, if reached, would merge the telecommunications operations of Telenor’s Total Access Communication (Dtac) and CP Group’s True Corporation (True), Oslo-based Telenor said in a statement Friday.

Dtac is currently valued at around $ 3 billion, according to data from Refinitiv Eikon, while True is worth $ 4.5 billion.

CP Group did not immediately respond to a request for comment.

Mobile operators face pressure on profits in a challenging industrial environment and increasing investment costs as new technologies such as 5G emerge.

“There are open questions pending and there is no certainty that the talks will lead to a final agreement. Telenor will not provide any further comments at this point in the process,” the Norwegian company said.

Telenor serves 172 million customers with around half of its turnover generated in Asia and the other half in the Nordic region.

Telenor signed an agreement in June with Malaysian telecommunications company Axiata Group Bhd to merge their mobile operations in Malaysia in a $ 15 billion deal, forming a new market leader there.

Telenor’s shares were trading up 1.3% at 08:12 GMT.


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