For millions of Malaysians who rely on their mobile phones for daily communication, work, and family connections, the telecommunications landscape is about to change. The proposed merger of two of the country’s largest mobile service providers, Celcom Axiama and DiGi.Com, has moved a step closer to reality, promising a new market leader that will serve nearly 19 million subscribers. This week, the parent companies behind these local units—Malaysia’s Axiata Group and Norway’s Telenor ASA—announced a key regulatory approval.
On Thursday, Telenor confirmed that the Securities Commission Malaysia has granted clearance for the merger. This decision follows a previous green light from the Malaysian Communications and Multimedia Commission, which stated in June that it had no objections to the plans.
For the average Malaysian consumer, the merger of the country’s second and third largest mobile services providers could reshape everything from pricing plans to network coverage. The combined entity, to be called Celcom Digi, is expected to have an enterprise value of $15 billion, according to two sources with knowledge of the deal who spoke last year on the condition of anonymity. The new company, which will be listed on the Kuala Lumpur stock exchange, is projected to generate annual revenue of approximately $3 billion.
Facing a Competitive Market
The drive behind this union is the intense competition within Malaysia’s telecom sector. Facing stiff market pressures, Axiata and Telenor announced the planned tie-up last year. By merging their local operations, the two companies aim to create a stronger competitor capable of weathering the challenges of a crowded marketplace.
The deal is designed to combine the resources and customer bases of Celcom Axiama and DiGi.Com, positioning Celcom Digi as the new market leader in the country. Under the current structure, the two parent companies—Axiata Group and Telenor ASA—each plan to own a 33.1% stake in the newly formed entity.
This equal ownership reflects a partnership of equals, with both firms contributing their Malaysian assets to the venture. The remaining shares will be held by other investors and the public once the company is listed.
Next Steps for the Merger
While the Securities Commission Malaysia’s approval marks a significant milestone, the deal is not yet complete. Telenor stated that the completion of the proposed transaction will now be subject to the approval of Bursa Malaysia, the country’s stock exchange, as well as the approval of shareholders from both Axiata and Digi. The companies have indicated that they expect the merger to close by the end of the year.
Looking ahead, all eyes will be on Bursa Malaysia and the shareholder votes in the coming months. If the remaining approvals are secured, Celcom Digi will officially launch as a combined entity, bringing together nearly 19 million subscribers under one brand.
For the millions of Malaysians who depend on mobile services, the next step will be to see how this new market leader shapes the future of connectivity in their daily lives.
