Expect significant new tariffs on Chinese imports and moderate levies on goods from other nations , as President-elect Donald Trump rolls out his protectionist agenda. However, with his preference for chaotic policymaking and sudden shifts , there’s uncertainty on how soon these import taxes will actually hit. Dubbed “ Tariff Man ,” Trump aims to use tariffs both strategically and tactically . He’s mentioned taxing all Chinese goods up to 60% and potentially setting 10%-20% tariffs on imports globally , but details on these plans remain vague . Key players within Trump’s team are divided: Robert Lighthizer , a staunch tariff advocate, sees permanent duties as crucial to balance US trade , while others, like billionaires John Paulson and Scott Bessent , view tariffs as temporary leverage. Trump’s previous administration had mixed feelings, especially on national security-related trade limits , which he sometimes dismissed, favoring an “open for business” approach. High-profile busin
Axiata Group Bhd has finalized the acquisition of Airtel Lanka, a wholly-owned subsidiary of India’s Bharti Airtel. The transaction, executed via Axiata’s 83%-owned unit Dialog Axiata, involved the issuance of 952.7 million shares, equating to a 10.355% stake in Dialog’s enlarged share base to Bharti Airtel.
The merger agreement, signed in April, aims to streamline operations in Sri Lanka by combining the resources and infrastructure of Axiata, Dialog, and Bharti Airtel. The consolidation is expected to yield substantial economies of scale, reduce infrastructure duplication, and generate significant synergies in technology and capital expenditure. This, in turn, will enhance high-speed broadband connectivity, voice services, and other value-added offerings while driving cost savings and operational efficiencies.
Market Reaction and Analyst Insights
Despite the strategic benefits, the market response was lukewarm, with Axiata shares closing down 2.31% to RM2.54, valuing the group at RM23.32 billion. Year-to-date, Axiata shares have gained 5.83%.
Analysts have expressed mixed views on the deal. TA Securities raised concerns about potential earnings volatility due to Airtel Lanka’s financial woes, having posted a net loss of RM245.4 million for the 2023 fiscal year. The firm cautioned that Dialog could face significant earnings fluctuations if Airtel Lanka’s performance does not improve as anticipated.
Conversely, Kenanga Investment Bank remains optimistic, suggesting that the earnings drag from Airtel Lanka may be short-lived. The bank anticipates that the merger will fortify Dialog Axiata’s dominant market position in Sri Lanka, expanding its subscriber base to over 22 million.
Strategic Implications
Dialog Axiata, already Sri Lanka’s largest telecommunications provider, is poised to leverage this merger to enhance service offerings and market reach. The combined entity aims to provide superior connectivity and competitive pricing, benefiting consumers through improved telecom services.
The strategic consolidation underscores Axiata’s commitment to reinforcing its market leadership and expanding its footprint in the South Asian telecommunications landscape. As the merged operations stabilize, the long-term prospects for enhanced connectivity and service quality in Sri Lanka look promising.
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