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Merger of convenience

A man walks past the logos of DTAC and True at a department store in Bangkok on Nov 22. REUTERS The planned merger of Total Access Communication Plc (DTAC) and True Corporation has led to criticism of potential market dominance as well as an understanding of the firms’ business needs, but the move sends a clear signal that the telecom business may not be as promising as it used to be. Some industry pundits see the deal as Telenor, the Norwegian parent of DTAC, securing a soft exit from the Thai market. The stunning merger plan was announced by Telenor and conglomerate Charoen Pokphand (CP) Group, the parent of True, at a joint press conference on Nov 22. Both indicated True and DTAC will consolidate to form a new company that will move into technological fields in addition to the traditional telecom business. The path towards the merger is expected to be rough, with a long list of regulatory and social challenges, as academics and consumer advocates claim the deal would lead to a critical level of market concentration with only two major players left — Advanced Info Service (AIS) and the new merged entity — which could take a toll… Read full this story

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Merger of convenience have 395 words, post on www.bangkokpost.com at November 29, 2021. This is cached page on The Best Articles. If you want remove this page, please contact us.

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