MCMC (Malaysian Communications and Multimedia Commission) has issued a notice of no objection to the proposed merger between business of Digi Telecommunications and Celcom, according to the latest official statement released.
To recap, MCMC issued a Statement of Issues to Applicants in accordance with the Merger Guidelines on April 1, 2022 for said application of merger and acquisition dated May 17, 2019, to address concerns that this merger will or is likely to reduce significant competition.
According to the official statement released by MCMC, “the Applicant has submitted an undertaking that contains the Applicant’s commitment in addressing the issues of competition which had been highlighted by MCMC in the Statement of Issues. MCMC has considered the commitment offered by the Applicant and is satisfied with the reassurance of the Applicant on the issue of competition.”
Meanwhile, in the joint official statement issued by both Digi and Celcom, no formally agreed name is given for the merged entity hence it would be known as “MergeCo’ at the point of writing.
The statement said, “MergeCo is well-poised to accelerate the nation’s digital aspirations and spur new growth opportunities for all.”
It also stated that, “MergeCo will provide better network quality and coverage as it will be primed to invest in network expansion to support growing demand for data and digitalisation. In addition, as societies and businesses increasingly turn to digitalisation for productivity and efficiency gains, MergeCo will be well-placed to drive 5G solutions, catalyse new growth opportunities for large enterprises and SMEs, and attract and partner global digital giants in support of JENDELA and MyDigital aspirations. MergeCo will also leverage on combined economies of scale to deliver benefits to customers through strengthened core distribution, improved network operations, and efficiencies realised from operational activities.”
