True Corporation ("True") and Total Access Communication ("DTAC") have completed their merger, which is Southeast Asia's largest telecoms merger. The merged entity, called True Corporation, debuted on the Stock Exchange of Thailand on 3 March 2023.
The merger is a three-to-two transaction - True and DTAC reportedly hold 34% and 21% market shares respectively (based on mobile subscribers), and the merged entity will become the largest player, overtaking the present market leader Advanced Info Service Pcl with 44% market share. The telecoms regulator, the National Broadcasting and Telecommunications Commission ("NBTC"), acknowledged the US$8.6 billion merger between True and DTAC on 20 October 2022 and stipulated conditions for the merger, including pricing conditions, capacity allotment requirements for mobile virtual network operators’ use, and hold-separate requirements. The new entity is required to continue using the DTAC and TRUE brand names for a period of three years.
The merger has been subject to challenges. Lawsuits against NBTC have been brought to the Central Administrative Court, notably, by the Thailand Consumers Council ("TCC"), to repeal the NBTC's decision on the True-DTAC merger. On 9 December 2022, the Central Administrative Court rejected the TCC's plea for an injunction as the court found 'no ground which would suggest that the NBTC's decision was unlawful'. This decision to reject the injunction request paved the way for the completion of the merger; however, the case itself is pending the court's decision.
For more information, click here to read our Competition Bites 1Q 2023 (page 12).
