Axiata and Sinar Mas to Forge US$6.5b Telco Giant in Indonesia to Drive 5G Expansion

The Business Times | 11 December 2024

New enlarged entity XLSmart expected to deliver annual pre-tax savings of up to US$400 million through network integration and resource optimisation

Malaysia’s Axiata Group and Indonesia’s Sinar Mas Group announced a landmark US$6.5 billion merger of their Indonesian telecom units on Wednesday (Dec 11) to form XLSmart. The move underscores how companies are increasingly consolidating their businesses as they vie for market share in Indonesia’s fiercely competitive telecom sector.

The merger of Axiata’s XL Axiata and Sinar Mas’ Smartfren, pending regulatory and shareholder approvals and set to close in the first half of next year, is expected to deliver annual pre-tax savings of US$300 million to US$400 million through network integration and resource optimisation, according to a joint statement by both companies. The merger hopes to drive 5G expansion, boost artificial intelligence and enhance network quality.

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