Axiata, Sinar Mas Merge Indonesia Units in $6.5 Billion Deal (1)

Malaysian wireless carrier Axiata Group Bhd. and Indonesian conglomerate PT Sinar Mas Group agreed to merge their telecommunications operations in Indonesia in a deal that values the business at $6.5 billion.

The owners of PT XL Axiata and PT Smartfren Telecom said the transaction would take effect on April 15, with the former being the surviving entity and changing its name to XLSmart Telecom Sejahtera, according to disclosures Wednesday.

The disclosures confirmed a Bloomberg News report Monday that the companies were nearing an agreement and could announce a deal this week.

The agreed merger price for XL is 2,350 ...