Charoen Pokphand Group (CP Group) and Norway-based Telenor have signed a USD8.6 billion merger agreement for their telecom units in Thailand, subject to regulatory approvals. Telenor’s majority-owned Total Access Communication (Dtac) will be merged with CP Group-owned True Corporation (True) at a share exchange ratio of 10.221. The companies will both own a third of the merged company, with stock market investors owning the remaining stake.

The merger is expected to make the companies as one of the major operators in Thailand with nearly 40 per cent revenue market shares. The partnership is also expected to lower investment costs in 5G infrastructure.