KUALA LUMPUR: A successful merger between Axiata Group Bhd and Telenor ASA’s Asian operation could trigger merger and acquisition interests among banking companies, an online equity broker said.
Rakuten Trade Sdn Bhd head of research Kenny Yee said banking companies, especially the smaller players, looked for ways to strengthen their positions amid wider usage of digital technologies in the industry.
“Local banks have reached their saturation point with the need to expand their horizon regionally and to counter the imminent digital banking wave,” he told reporters at the second half 2019 market outlook briefing here yesterday.
If mergers and acquisitions in the banking sector took place, it would be a powerful catalyst for the local bourse as per the banking consolidation phase during the 2006/2007 period, he said.
Axiata and Norway-based Telenor announced in May of plans to establish a new merged global entity by combining Axiata and Telenor’s Asian operations within both their Asean and South Asia footprint
markets.
The merger was intended to create a global champion comprising of their diverse market-leading portfolio of telecommunications, digital and infrastructure assets. – Bernama
