Emerging markets operator Millicom is looking to strengthen its standing in Colombia by merging its local mobile arm with a regional telco.

In a statement, Millicom says it has entered into exclusive negotiations with EPM, the main shareholder in UNE, which provides cable, fixed and mobile services in the area around Medellín, Colombia’s second-largest city.

UNE also owns 25 percent of Tigo Colombia, the country’s third-largest mobile operator controlled by Millicom (50 percent plus one share); the plan is to combine UNE and Tigo into a single entity.

The two firms say they have been working together for the past six years, with UNE recently offering mobile services via a roaming agreement with Tigo.

According to Wireless Intelligence, Tigo had 5.4 million mobile connections in Colombia in Q4, trailing the local arms of America Movil (30.6 million) and Telefonica (12.2 million).

“The combination of a strong local partner with the international expertise of Millicom has provided a solid model in the past and will be even more important for the future,” said Millicom CEO Hans-Holger Albrecht.

Financial terms were not disclosed but Millicom said it does expect the deal to mean that consolidated Net Debt will exceed 1.5x EBITDA.

The discussions are expected to conclude during the first half of 2013.