Telenor and CP Group discuss $7.5 bln Thailand telecom merger

Telenor in June signed a deal with Malaysian telecoms firm Axiata Group Bhd to merge their mobile operations in Malaysia in a $15 billion deal, forming a new market leader there. Telenor's shares traded 1.3% higher at 0812 GMT.

Norway's Telenor and Thailand's Charoen Pokphand Group (CP Group) are exploring a merger of their telecom units in Thailand, which could become the Norwegian firm's second multi-billion dollar tie-up in Southeast Asia this year. A deal, if completed, would merge the telecom operations of Telenor's Total Access Communication (Dtac) and CP Group's True Corporation (True), Oslo-based Telenor said in a statement on Friday.

Dtac is currently valued at around $3 billion, according to Refinitiv Eikon data, while True has a value of $4.5 billion. CP Group did not immediately respond to a request for comment.

Mobile operators are facing pressure on profits in a challenging industry environment and mounting investment costs as new technologies such as 5G emerge. "There are open issues outstanding and there is no certainty that the discussions will result in a final agreement. Telenor will not provide any further comments at this stage of the process," the Norwegian company said.

Telenor serves 172 million customers with roughly half its revenue generated in Asia and half in the Nordic region. Telenor in June signed a deal with Malaysian telecoms firm Axiata Group Bhd to merge their mobile operations in Malaysia in a $15 billion deal, forming a new market leader there.

Telenor's shares traded 1.3% higher at 0812 GMT. 

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