Reliance Communications (RCOM) and Aircel are expected to finalise a merger agreement in early July, the Economic Times reports, citing officials with knowledge of the matter. According to the sources, negotiations are in their advanced stages and the duo are finalising various legal and commercial terms of the agreement. Under the deal, RCOM will spin off its wireless operations into a new company which would then be merged with Aircel. The enlarged cellco will operate under a new brand name and will be split 50:50 between the two partners. Following the merger, the two companies plan to introduce another foreign investor, with Sistema – whose Sistema Shyam Teleservices Limited (SSTL) is due to be rolled into RCOM via a separate deal beforehand – and US investors reportedly amongst those under consideration. The merger is expected to generate costs savings of around INR25 billion (USD372.6 million) annually, and the combined entity is anticipating EBITDA of INR50 billion to INR60 billion in the financial year ending 31 March 2018.