Bloomberg reported Axiata Group and conglomerate Sinar Mas were finalising talks to merge their Indonesian mobile businesses, which would give XL Axiata the scale to better compete with the country’s two largest players.

The pair are working out details of a deal to merge XL and Smartfren, which Bloomberg wrote involves a mix of cash and shares, and could be completed this week.

Local newspaper Kompas wrote the tie-up aims to create a business which is “more resilient, strategic and responsive to increasing consumer needs”.

The news comes days after long-serving XL president director Dian Siswarini stepped down. She took the helm in 2015. Local media reported she resigned on 5 December.

Data from GSMA Intelligence showed XL ended September with 57.7 million mobile subscribers and Smartfren 37.7 million. The combined unit would be marginally behind the 97.5 million of number two player Indosat Ooredoo Hutchison.

Telkomsel leads with 158.4 million.

Axiata and Sinar Mas signed a non-binding agreement to explore a merger of their mobile units in May.

Sinar Mas runs one of Indonesia’s largest business empires, with operations in mining, pulp and paper, and property.