Telenor Asia announced yesterday (Wednesday) the completion of the merger between Total Access Communication Company (DTAC) and True Corporation (TRUE), billed as the largest telecom merger in Southeast Asia by combined enterprise value.

Jørgen A. Rostrup, executive vice president of Telenor Group and head of Telenor Asia, said that the completion of the deal is a new milestone in Thailand’s impressive digital journey.

DTAC is a subsidiary of the Telenor Group of Norway, while True is the subsidiary of the Charoen Pokphand Group.

“The pace of innovation is expected to accelerate, creating growth opportunities for the country.  Telenor is ready to support True Corporation with access to advanced technology, a network of global partners and cutting-edge industry insights,” according to Telenor Asia’s statement, issued yesterday.

The new company will combine the strengths of DTAC and True to deliver high quality connectivity and leverage the latest developments in 5G, AI and the Internet of Things, said Rostrup.

He also said that the mergers in Thailand and Malaysia will see Telenor expanding its role in Asia, serving more than 200 million customers.

The new entity, named True Corporation has been registered with the Business Development Department of the Ministry of Commerce. The company’s board has appointed Manat Manavutiveth, current co-president of True, as the CEO of the new company, and Sharad Mehrotra, the current CEO of DTAC, as his deputy.

The board has also resolved to call a meeting of shareholders of the two companies for approval of the new entity and other issues, such as capital registration and the number and value of shares in the new entity.

The merger will result an increase the customer base of True Corporation to 55 million mobile subscribers, compared to the 45 million of the current market leader, Advanced Info Service Plc (AIS).

Under the merger conditions, set by the National Broadcasting and Telecommunications Commission (NBTC), the new company must retain the brand names of DTAC and True for three years and that it must continue to provide services and promotional rights to their customers.

Thai consumer groups had tried to stop the merger deal by asking the Central Administrative Court to issue an injunction to stall the deal, but this was rejected by the court. The case is still pending with the court.