The boards of Axiata Group and Digi gave the green light to a proposed merger of their mobile units in Malaysia, clearing the final hurdle to the long-delayed deal.

Both companies issued statements noted at extraordinary general meetings their boards approved the merger of Celcom Axiata and Digi, creating the largest operator in Malaysia with about 20.5 million mobile connections, GSMA Intelligence estimates for Q3. Rival Maxis closed September with 11.9 million.

After the deal closes, Axiata and Telenor will each own a 33.1 per cent stake in the new entity, which is proposed to be named Celcom Digi.

The deal previously received approval from the Securities Commission, Malaysian Communications and Multimedia Commission and local stock market.