XL Axiata and Smart Fren Agree $6.5 B Merger, Forming XLSmart Telecom

XL Axiata and Smart Fren have officially agreed to a merger valued at US$6.5 billion, creating a new entity called XLSmart Telecom. This deal marks another major milestone in Indonesia's telecommunications consolidation, joining subscriptions, spectrum, and infrastructure under one umbrella.

The merged group will serve about 94.5 million subscribers — approximately 27% of Indonesia's mobile market — with pro-forma revenues of IDR 45.41 trillion (roughly US$2.8 billion). The ownership structure allocates 34.8% each to Axiata and Sinar Mas (the parent company behind Smart Fren), with Sinar Mas paying up to US$475 million to balance their equity stakes in the new business.

XL Axiata predicts annual cost and operational synergies of US$300-400 million through the merger. Combined resources will allow XLSmart Telecom to broaden its service offerings, strengthen spectrum holdings, and improve financial resilience. The move is seen as a response to competitive pressure from larger rivals and continued consolidation in the sector.

The companies stated that regulatory approvals are still pending, but they expect to complete the transaction in the first half of 2025. Meanwhile, Axiata's stock trading in Kuala Lumpur was halted, and the merger announcement has elicited positive investor sentiment with a rise in share price.

In his remarks, Axiata CEO Vivek Sood emphasized the group's prior experience in successful telecom mergers across Asia (such as those in Bangladesh, Malaysia, and Sri Lanka), and said that this deal will unlock value for shareholders and support Indonesia's digital transformation ambitions.