The proposed Celcom Axiata and DiGi Malaysia merger has edged a step closer after the boards for both companies gave their approval for the deal.

It's set to create the country's biggest mobile network operator, with over 20 million mobile subscribers.

The deal has been on the cards for some time, with Celcom and DiGi currently the second and third biggest operators in Malaysia, and will launch the merged company past current market leader Maxis, which boasts close to 12 million customers.

The deal is expected to be completed by the end of this year, reports The Edge Markets, with Axiata and Telenor each owning 33.1 percent stakes in the new entity, anticipated to be known as Celcom DiGi.

Earlier this year the Malaysian Communications and Multimedia Commission (MCMC) approved the merger, offering no objection to the deal.

Malaysia is not short of mobile operators, and even if this merger concludes there will still be five operators in the country; Celcom DiGi, Maxis, Telekom Malaysia, YTL Communications, and U Mobile.