Etisalat and CK Hutchison are merging their operations in Sri Lanka to improve their services in the market.
The two operators are respectively the third and fourth largest operators in Sri Lanka, with market shares of 13% and 10%. Dialog Axiata leads the market with 45%, followed by Mobitel on 24%. The smallest operator is Airtel, with 8%.
In a joint statement, the companies said “this transaction is part of the stated strategy of portfolio optimisation of the Etisalat Group.” Once the deal closes, CK Hutchison will hold the majority and controlling stake in the merged entity.
The proposed merger is subject to certain regulatory approvals among other conditions. The agreement may have been precipitated by the impending September expiration of Etisalat’s 10-year mobile operating licence.