Axiata Group and conglomerate Sinar Mas sealed a deal to merge their Indonesian telecoms units XL and Smartfren, in a deal to be completed on 15 April 2025 and which values the new company at $6.5 billion.

Each group will hold a 34.8 per cent stake in the merged entity, which will be named XLSmart and have about 95.4 million mobile subscribers.

In a statement, Axiata noted it signed a conditional merger agreement with Smartfren Telecom and related subsidiaries yesterday (10 December).

Ahead of the merger, XL president director Dian Siswarini unexpectedly resigned and more than 1,000 employees took leave to protest the tie-up and air concerns about job security, local media reported.

The merged company will remain the third-largest mobile player in Indonesia, behind Indosat Ooredoo Hutchison (IOH) on 97.5 million users and Telkomsel with 158.4 million.

IOH was created by a merger of Ooredoo Group and CK Hutchison’s mobile units in 2022.

The tie-up marks what will likely be the market’s final consolidation. Over the past ten years, the number of players dropped from around 12 to three.