Telekom Austria and Telekom Slovenije have agreed to merge their Republic of Macedonia subsidiaries Vip Operator and One.

Telekom Austria will hold a 55% stake and have sole control of the newly created entity, while Telekom Slovenije will hold 45%.

The agreement between the two parties also includes call and put options for the exit of Telekom Slovenije from the joint venture within three years from closing of the merger.

Furthermore, the transaction is inter alia subject to confirmatory due diligence of One, expected by mid-November. Final merger control clearance and closing of the deal should then take place in Q1 2015.

One is the third largest mobile network operator in the Republic of Macedonia, with a market share of 23.6% and a customer base of about 528,000 customers as of the end of 2013.

Meanwhile, Telekom Austria has offered mobile services in the country through Vip Operator since 2007. It had a market share of 28.1% and around 630,000 customers as of the end of 2013.

Telekom Austria also acquired blizoo Macedonia in July this year and now also offers fixed-line services in the country.