KUALA LUMPUR: The Malaysian Communications and Multimedia Commission (MCMC) has released two documents on “Guidelines on Mergers and Acquisitions” and “Guidelines on Authorisation of Conduct”.
This is aimed at increasing transparency and provide clarity to the industry on MCMC’s approach when assessing mergers and acquisitions (M&As) of telecommunications companies, as well as authorisation of conduct which would substantially lessen competition in the communications market.
The guidelines came on the heels of the planned merger of the Asian operations of Axiata Group Bhd and Norwegian firm Telenor.
MCMC chairman Al-Ishsal Ishak said the communications and multimedia industry was a critical component and key contributor to the country’s economy.
“Policies that ensure a competitive and forward-looking industry can significantly impact Malaysia's economic growth.
“While mergers and acquisitions can allow our companies to achieve efficiency through greater scale and scope, as well as gain access to new technologies and markets, it can also serve to reduce competition and result in market dominance,” he said in a statement today.
“As the regulator of the communications and multimedia sector, it is imperative that we strike a balance between allowing companies to pursue their corporate strategies and prioritising shareholder returns, while maintaining competitive dynamics in the market to protect products and services available for consumers and businesses,” Al-Ishsal added.