1. Startups

XL Axiata and Smartfren Will Merge, Forming New Entity "MergeCo"

The name MergeCo was previously used by Axiata when it merged with the Malaysian Communications and Multimedia Commission (MCMC)

Axiata Group Berhad (parent of XL Axiata) together with Sinar Mas (parent of Smarfren), have signed Memorandum of Understanding not binding. This agreement aims to explore the possibility of a merger between XL Axiata and Smartfren, which is expected to create a new, stronger entity called MergeCo.

The name MergeCo is not the first one Axiata has used, previously when they merged with Malaysian Communications and Multimedia Commission (MCMC) in June 2022 also used the brand name.

This exploration process is still at an early stage. Both companies hope to remain controlling shareholders in MergeCo. Currently, no binding agreement has been reached, and both parties are in the process of validating, due diligence and creating a joint business plan.

If this merger is successful, it is hoped that it will create significant synergies through the combination of business scale, expertise and local market understanding of both companies. This will not only strengthen the position of both companies in the Indonesian telecommunications market but is also expected to result in a better experience for consumers.

Axiata, as a major player in the digital and technology sector in Indonesia, has a long-term vision to support the digital future in this country. Through this initiative, Axiata wants to strengthen its commitment as a market leader in Indonesia, which is a key market for the company.

MergeCo is expected to not only meet increasing market demands but also create added value for shareholders through efficient operations and the use of the latest technology. In the future, if the merger takes place, the transaction will be subject to applicable regulations and will require approval from shareholders and regulators.

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Disclosure: This article was produced with AI technology and supervision of the content writer
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