Hutchinson Opens Up the Possibility to Merge with XL Axiata

Hutchison Holdings Ltd, the holding company of Hutchison Tri, is reportedly holding talks with Axiata in an attempt to combine forces and consolidate the business of cellular telecommunications in Indonesia. According to a resource, both companies had not discussed it substantially but did not deny the interest either. The report is signaling the possibility of a consolidation between the two cellular operators.

However, the government once pitched the idea of cellular operator consolidation in Indonesia. The reason was that the operators in Indonesia were too many, and the country could benefit from a lower number of operators. Quoted by Bloomberg, Axiata representatives said that the company had successfully attracted various business partners such as Teleanor ASA, Mitsui & Co, and Japan Sumitomo even though it was too early to decide the structure of the business. The resource also did not mention whether the talks held was related to a business transaction.