Indian mobile operator Reliance Communications (R-Com) has sold its mobile mast arm, Reliance Infratel, in one of the biggest mergers the country has seen. The unit will be merged into India’s largest independent mobile tower operator, GTL Infrastructure, as part of a US$11 billion deal, creating what a statement calls “the world’s largest independent telecommunications infrastructure company.” The Financial Times notes that R-Com and GTL did not reveal the terms of the deal or on what they based the US$11 billion valuation. The transaction will bring a “cash infusion to Reliance Communications, leading to substantial reduction of its consolidated gross debt and improved leverage ratios,” the statement said. Under the terms of the deal, GTL, controlled by Indian businessman Manoj Tirodkar, is expected to retain the biggest stake in the merged entity. GTL in January bought the masts of Indian mobile operator, Aircel, which gave it a total of 32,500 towers. The deal with Reliance Communications will increase this to 80,000 towers with 125,000 tenancies, including most of the major mobile companies operating in India. 

Talk of a deal emerged earlier this month as reports suggested that Reliance needs to pay down huge debt (US$7.3 billion) following its expenditure in India’s recent 3G spectrum auctions. The operator has been linked with several international investors since the 3G auctions closed, including Vivendi, AT&T, MTN and Etisalat. It said earlier this month its board had agreed to sell up to 26 percent of the firm.