NBTC monitoring merger of DTAC and True

Jorgen A Rostrup, executive vice-president of Telenor Group and head of Telenor Asia, (seated centre left) and Suphachai Chearavanont, chairman of the board of True and chief executive of CP Group (seated centre right), on Monday sign the memorandum of understanding between DTAC and True for an equal partnership to form a new merged firm to pursue tech business.

The National Broadcasting and Telecommunications Commission (NBTC) on Wednesday said it was closely monitoring the proposed merger of Telenor ASA's Total Access Communication Plc and Charoen Pokphand Group's (CP Group) True Corporation Plc.

"On the merger, the agency will closely follow and investigate for the benefit of the public and country," acting secretary-general Trairat Wiriyasirikul said in a statement.

Telenor and conglomerate CP Group on Monday announced an $8.6 billion deal to merge their telecom units. The new entity would compete with market leader Advanced Info Service Plc (AIS).

The agency sees this issue as important and may affect competition in the telecommunication industry and users, the NBTC said in a statement.

"The agency will request that the companies clarify the need for a merger, the action plan and merger time frame, including the impact to users and the market, and potential remedies."

Telenor chief financial officer Tone Hegland Bachke on Monday said the company was positive the merger would receive regulatory approval.