News
Combined entity to boast nearly 40 million mobile subscribers; Malaysia-based Axiata to take controlling share.
Axiata and Bharti Airtel on Thursday agreed to merge their operations in Bangladesh, which will create a stronger challenger to market leader Grameenphone.
The combined entity will boast just over 39 million mobile subscribers. According to the Bangladesh Telecommunication Regulatory Commission (BTRC), Robi Axiata served 28.32 million customers at the end of December, while Airtel Bangladesh served 10.71 million.
The merged company will overtake current number two Banglalink, which has 32.87 million subscribers, but it will still be some way behind Telenor-owned Grameenphone, which has 56.68 million subscribers.
"There is a compelling rationale for bringing together the strengths of both entities," said Gopal Vittal, CEO, India and South Asia, at Bharti Airtel, in a statement. "The combined entity will be well positioned to leverage the operational synergies to serve customers better with world-class services and contribute to the growth of the telecommunications sector in Bangladesh."
Bharti Airtel was initially rumoured to be considering a complete sale of Airtel 
Bangladesh. The India-based company entered exclusive merger talks with Axiata on 9 September 2015.
The financial terms of Thursday’s deal were not disclosed. After the deal completes, Malaysia-based Axiata will hold 68.3% of the combined company, while Bharti Airtel will hold 25%. The remaining 6.7% will be held by NTT DoCoMo, which currently owns an 8.41% stake in Robi Axiata.
The merger is subject to approval from Bangladeshi authorities. The transaction is expected to close in the first half of 2016.
"Going forward, the combined capabilities of Robi and Airtel will be directed towards providing customers an unparalleled portfolio of innovative mobile and broadband offerings at affordable rates," said Supun Weerasinghe, CEO of Robi Axiata.
"We believe this to be a powerful differentiating factor and a very compelling value proposition for our customers," he said.
