Telenor - Axiata merger called off

KUALA LUMPUR: The merger of Asian operations between Axiata Group Bhd and Norway's Telenor ASA has been called off.

Axiata and Telenor's Digi.com said in separate filings with the stock exchange that both parties have mutually agreed to end discussions over a non-cash combination of their telecom and infrastructure assets in Asia.

“Apart from the sheer complexity of the deal, which involves 14 entities across nine countries, the stumbling blocks surround commercial issues, national and staff interests, and Indonesia’s reluctance to give its blessings, as it sees Norway as being part of the European Union’s (EU) pressure on palm oil imports. Without Indonesia as part of the enlarged group, the odds of the deal materializing are basically zero.”