Telenor and CP Group Discuss Giant Merger Deal

Telenor and CP Group plan $7.5 billion Thai merger

Norway’s Telenor and Thailand’s Charoen Pokphand are exploring the possibility of merging their telecom businesses in Thailand, which could create a new market leader in the Southeast Asian country.

The deal, if completed, will combine Telenor’s telecommunications business, called Total Access Communication, or Dtac, with CP Group’s True Corporation project. Dtac’s current valuation is $3 billion, while True has a valuation of about $4.5 billion.

The potential deal would mark the Norwegian company’s second partnership in Southeast Asia this year following its partnership with Axiata Group in July to combine its mobile network operations in Malaysia and produce a new flagship company there also with a market value of up to $15 billion.

Mobile network operators are facing pressure on profits in a business environment filled with difficulties and increasing investment costs with the emergence of new technologies such as the new 5G networks.

Telenor serves 172 million customers, and collects roughly half of its revenue in Asia and the other half in the Nordic or Nordic region. The current deal, if it receives the necessary regulatory approvals will give the resulting company a market share of about 52% in Thailand, overtaking AIS, which ranks first in the country with a market share of up to 44%.

This deal is in line with Telenor’s strategy to reduce risks and open the way to expand its Asian business, which was reflected in a 1.1% rise in its stock after the news broke.

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