Robi Axiata Limited and Airtel Bangladesh Limited have signed a deal to merge their respective telecommunication subsidiaries in the country.
Robi Dhaka office Thursday confirmed the Dhaka Tribune about the merging of the two telecom operators.
It also said the merger is subject to conditions precedent including receiving applicable approvals from relevant authorities and is expected to complete in the first half of 2016.
On September 9 of last year, both parties entered into an exclusive discussion to explore possibility of combining the business operations in Bangladesh.
Upon completion, Axiata will hold 68.3% controlling stake in the combined entity while Bharti will hold 25%. The remaining 6.7% will be held by the existing shareholder, NTT DOCOMO of Japan.
Post-merger, the combined entity operating as Robi will serve approximately 40 million customers.
The joint strengths of Robi and Airtel will deliver the widest mobile network coverage across Bangladesh, strengthening its position in the mobile internet segment as well as consolidating its position as the second largest operator in the country.
The telecommunications landscape in Bangladesh has been one of high-growth albeit intensively competitive with six players.
The proposed merger is set to strengthen the industry structure, competitiveness more importantly, bring greater benefits to customers in terms of network quality and coverage and an improved offering of data products and services.