Under the deal, Robi Axiata and Airtel Bangladesh will combine their assets to create the second largest operator in Bangladesh after Grameenphone.
The merged company will have the widest network reach of any operator and a stronger position in the mobile internet segment, the companies said.
Axiata will own a controlling 68.3% in the combined company, Bharti Airtel will hold 25% and the remaining 6.7% will be held by existing shareholder NTT DoCoMo.
“The highly competitive and crowded Bangladesh telecommunications sector solicits consolidation and we believe this merger will form greater economies of scale for both groups,” Robi CEO Supun Weerasinghe said.
“Additionally, it will result in shared investment capacity of the leading two industry players to optimize strategies and deliver enhanced value to consumers, benefiting the industry at large.”