Telenor and CP Group discuss $7.5b Thailand telecom merger

Norway's Telenor and Thailand's Charoen Pokphand Group (CP Group) are exploring a merger of their telecom units in Thailand that could form a new market leader in the Southeast Asian country.

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.

It would be the Norwegian firm's second tie-up in Southeast Asia this year, following a June deal with Axiata Group Bhd to merge mobile operations in Malaysia in a $15 billion transaction, creating a new market leader there.

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.