2) . Illustrate one (1) potential defensive strategy that will be taken from the Celcom Axiata Bhd and Digi.Com Bhd merger.

Celcom-Digi merger receives MCMC clearance Date: 29th June 2022 Axiata Group Bhd and Digi.Com Bhd have received a notice of no objection from the Malaysian Communications and Multimedia Commission (MCMC) to proceed with the proposed merger of their telco operations (MergeCo). The merger application for Celcom and Digi was submitted to the MCMC in July 2021. Coincidentally, the nod from the regulator comes one day before the deadline for Malaysia's telco operators to subscribe to a stake in the nation's 5G infrastructure asset owner Digital Nasional Bhd (DNB) as part of a compromise to roll-out the infrastructure under the single wholesale network (SWN) model. Shares of Axiata rose as much as 16 sen following the news, before settling five sen higher or 1.78% to close at RM2.86, giving it a market capitalisation of RM26.25 billion. Digi shares rose as much as 25 sen, and settled up 17 sen or 5.23% to RM3.42, valuing the group at RM26.59 billion. In a joint statement on Wednesday (June 29), the telcos said the notice signifies that the MCMC does not object to the proposed merger and that the parties will advance to the next phase of the proposed transaction. "Axiata and Digi are positive on the prospect of the proposed merger having passed a significant milestone in the ongoing approval process. "Upon completion of the transaction, the parties look forward to realising the potential of the proposed merged company, which is expected to culminate in a stronger capacity to drive digitalisation of society broadly for consumers, businesses, the partner ecosystem and the development of local talent," they said. Axiata and Digi said the MergeCo will provide better network quality and coverage as it will be primed to invest in network expansion to support growing demand for data and digitalisation. In addition, the MergeCo will be well placed to drive 5G solutions, catalyse new growth opportunities for large enterprises as well as small and medium enterprises, and attract and partner global digital giants in support of JENDELA and MyDIGITAL aspirations. They said in further unlocking the nation's digital potential, the MergeCo had proposed to invest up to RM250 million over five years to build a world-class innovation centre in Kuala Lumpur to keep Malaysia at the forefront of the global digital evolution. They said the innovation centre will be pivotal in advancing extensive research and development leveraging 5G,AI and Internet of things (IoT) technology. Axiata chairman Tan Sri Shahril Ridza Ridzuan said delivering improved network and connectivity for customers is clearly an imperative. He said that as two companies with a strong track record in contributing towards nation-building, "we are also excited about the digital inclusion and growth opportunities that the MergeCo and the proposed innovation centre will catalyse". "We look forward to playing an active role in encouraging national competitiveness through the provision of world-class connectivity and research platforms while also supporting the nation's entrepreneurs and digital talent in the race to confidently position Malaysia for growth in the digital economy," he said. Meanwhile, Jrgen Arentz Rostrup, the executive vice president and head of Telenor Asia, said the companies had reached a positive milestone in the Malaysian merger process with this regulatory clearance. "We are excited to move towards realising the full potential of bringing these two companies together, establishing a commercially stronger and more resilient digital service provider. "With the proposed structural moves in Thailand and Malaysia, Telenor has a clear ambition to create future-fit companies that can better support ambitious national digital aspirations and bring new, advanced services to consumers across the region," he said. Celcom-Digi merger may offer voluntary separation instead of retrenchment Date: 12th August 2022 There will not be any forced retrenchment following the Celcom Axiata Bhd and Digi.Com Bhd merger, but a possibility of voluntary separation instead. Rakuten Trade head of equity sales Vincent Lau said this merger is an opportunity for both Digi and Celcom staff, whereby those who opt to leave might gain attractive packages while those who stay will create a stronger entity. "As a bigger entity, they will become a market leader. "Coverage will be better and then there is the upcoming 5G technology to look forward to," he told The Malaysian Reserve recently. There may be an improvement in network coverage, saving their costs for 5G investments, as well as improving customer service. However, Lau warned that there might be some overlap in the management. "They cannot have two regional heads, so they must choose only one while the other could be the deputy, depending on the framework," he said. On June 21, the Malaysian Communications and Multimedia Commission approved the merger between Digi and Celcom to become MergeCo, which is expected to establish a commercially stronger and more resilient digital converged service provider. "As societies and businesses increasingly turn to digitalisation for productivity and efficiency gains, MergeCo will be well-placed to drive 5G solutions; catalyse new growth opportunities for large enterprises and small and medium enterprises; and attract and partner global digital giants in support of Jendela (Jalinan Digital Negara) and MyDigital aspirations. "MergeCo will also leverage on combined economies of scale to deliver benefits to customers through strengthened core distribution, improved network operations and efficiencies realised from operational activities," Celcom said in an earlier statement. "The merger is also committed to protect the welfare of its employees by not having any forced retrenchments and will create opportunities for them to be part of their growth," it added