Malaysian billionaires resurrect plan for nation's largest mobile operator

Malaysia's telecommunications sector is bracing for a potential consolidation as heavyweight players move forward with merger plans that would create the country's biggest mobile operator by subscriber base.

Maxis has commenced discussions with banks and law firms to explore the feasibility of a major acquisition, marking a revival of earlier attempts to combine forces with U Mobile. The move signals confidence among the billionaire backers of both companies that market conditions are now conducive to a transformative deal.

U Mobile's ownership is positioning the company for a substantial valuation, with expectations that any transaction could value the operator at RM10 billion or above. Such a price tag would reflect the strategic value of U Mobile's customer base, spectrum holdings, and market position in Malaysia's competitive telecommunications environment.

The potential merger would consolidate Malaysia's fragmented mobile market, where four major players currently compete. A combined Maxis-U Mobile entity would significantly alter the competitive dynamics and could unlock operational synergies through network integration, customer base consolidation, and cost optimisation.

The advisory process represents an early but concrete step toward deal execution. Success would require navigating regulatory approval from Malaysia's Communications and Multimedia Ministry and the Malaysian Communications and Multimedia Authority, alongside satisfying shareholder and creditor requirements at both organisations.