U.S. law firm Skadden, Arps, Slate, Meagher & Flom has advised Malaysia-headquartered Axiata Group on the $6.5 billion proposed merger of its Indonesian company XL Axiata and Smartfren Telecom, a subsidiary of Sinar Mas Group. Freshfields counseled Sinar Mas.

XL Axiata and Smartfren, which are both listed on the Indonesia Stock Exchange, are among the largest providers of telecommunications services in the Republic of Indonesia. The combined group will serve a mobile subscriber base of approximately 94.51 million, representing approximately 27 percent of the Indonesian market. The transaction is expected to close in the first half of 2025, subject to certain conditions, including regulatory and shareholder approvals.

 “We firmly believe that industry consolidation paves the way for a more connected Indonesia and ASEAN, bridging the digital divide to foster a thriving and inclusive future where communities and businesses flourish. This merger is an important step in laying the foundation for a robust digital economy. It will allow us to cater to the unique infrastructure demands of the Indonesian archipelago by providing a scalable platform that will enhance,” said Vivek Sood, group chief executive officer of Axiata Group, in a statement. 

The Skadden team was led by partners Jonathan Stone and Rajeev Duggal, with assistance from counsel Arthur Chan and associate Jasmine Yang. The team also included partners Jisun Choi, Bruce Goldner, Steve Kwok, and Rory McAlpine.

The Freshfields team advising on the transaction was led by partners Philip Morgan and Jon Bowden and counsel Jeremy Tan, with support from associates Shavonne Oh and Daria Park. Additional support was provided by partner and global co-head of M&A Robert Ashworth and counsel Daniel Boyle. Tax advice was provided by partner Peter Clements. Specialist IP/ IT advice was provided by partner Richard Bird, counsel Cedric Lindenmann, and associate Harshavardhan Ganesan.