Synergy Analysis and Growth Opportunity for PT XL Axiata Tbk after Merger & Acquisition 2011-2018
Ratna Ayu Gitasari, Rofikoh Rokhim
a) Master of Management, Faculty of Economics and Business, Universitas Indonesia
Kampus UI Salemba, Jakarta, Indonesia
*ra.gitasari[at]gmail.com
b) Faculty of Economics and Business, Universitas Indonesia
Kampus UI Salemba, Jakarta, Indonesia
Abstract
Telecommunication companies reach a critical point. The high level of investment, competition from technology companies and dynamic customer behavior make the company have to make a strategy so that the company can continue to grow and be able to run its business. PT XL Axiata Tbk (XL) to conduct M&A towards PT Axis Telekom Indonesia (AXIS) in 2014. This research links it with connecting it with two companies engaged in the analysis field post-M&A. Evaluations carried out in this study were published in the XL period before M&A (2011-2013) up to five years after M&A (2014-2018). Based on the results of the synergy effects, the results of revenue synergies and the synergy of cost for several aspects (semi-variable cost & fixed cost) showed positive values. While financial synergy found a negative value (on average). The opportunity for XLs growth shows positive when integrating M&A but shows negative post-M&A.
Keywords: Merger, aqcuisition, synergy, XL, Axis, growth opportunity, value added
Topic: Strategic Management & Ecosystem Business