CK Hutchison has closed its purchase of Etisalat’s Sri Lankan unit, which will see the UAE-based group exit the market, in line with its goal of streamlining its portfolio.
The deal was first made public in April this year, and has cleared the necessary regulatory hurdles for an outright acquisition.
Under the terms of the agreement, Etisalat will receive a 15% holding in Hutch Lanka, CK Hutchison’s local unit.
The parent firm intends to combine Etisalat’s operation with Hutch Lanka, bringing together Sri Lanka’s third and fourth-placed operators to compete more effectively against the market leader Dialog Axiata. The unit would have a market share of around 24%.
The takeover would see the market reduced to four from five mobile operators now which includes Dialog, Mobitel and Airtel.