XL Axiata-Smartfren merger to yield synergy

RHB Research said a consolidation will result in a healthier market conduct.

PETALING JAYA: The proposed merger between Axiata Group Bhd’s 66.3%-owned XL Axiata and Indonesia’s Smartfren could see improved economies of scale, operational synergies, reduced competition and capital expenditure savings from an enlarged spectrum.

The potential merger of the two Indonesian mobile businesses has been talked about for sometime now.