M&A guidelines for telecoms sector to infuse transparency and clarity
MCMC chairman Al-Ishsal Ishak(pic) said that “it is imperative that we strike a balance between allowing companies to pursue their corporate strategies and prioritising shareholder returns, while maintaining competitive dynamics in the market to protect products and services available for consumers and businesses”.
PETALING JAYA: The telecoms industry regulator, the Malaysian Communications and Multimedia Commission (MCMC), has issued a set of guidelines on mergers and acquisitions (M&As) that will prohibit entities from lessening the level of competition in the marketplace and it can take action against the companies if breaches are found.
The guidelines for M&As, which have been issued for the first time, come weeks after Axiata Group Bhd 
and Norwegian-Telenor ASA announced a proposed mega-merger to create a pan-Asian telecoms giant by merging their Asian assets.
One of the concerns of the mega-merger was the impact it would have on competition in Malaysia, as it would create a significant market player with over 50% market share with the merger of Digi.Com Bhd and Celcom Malaysia Bhd.
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