Telekom Austria Group and Telekom Slovenije Group have agreed to merge their respective mobile operator subsidiaries in Macedonia – Vip and One – which, regulatory approval permitting, will create a new entity with about the same number of connections as market-leader Makedonski Telekom (a Deutsche Telekom subsidiary).

Telekom Austria is to hold 55 per cent in the joint venture (JV) – and have sole control – while Telekom Slovenije takes up the remaining equity.

The agreement gives Telekom Slovenije put and call options to leave the JV within three years of the merger being set up.

Telekom Austria said the transaction was dependent on the outcome of due diligence on One, a process expected to be finalised by mid-November. The Austrian incumbent says regulatory clearance – and the setting up of the JV – should happen in Q1 2015.

The JV’s announcement comes closely on the heels of Telekom Austria’s acquisition of Macedonian cable operator blizoo in July. The Austrian incumbent is making a push on ‘converged’ services in the Republic.

According to figures from GSMA Intelligence, One had 532,000 connections at the end of September, while Vip had 636,000. Makedonski Telekom had 1.2 million connections.