India's Telecom ministry is likely to allow Etisalat DB Telecom to merge with Allianz Infratech, making it the first acquisition among new telecom operators who were given licences in 2008.

The current rules prohibit sale of promoter's equity in telecom service providers for three years after bagging the licences. However, both the companies had applied for a merger before the new regulation came into force, according to a report in The Times of India.

'The matter has been discussed. The concerned authorities and they stated that now the transferee company (Etisalat) has fulfilled all the requirements of transfer. Accordingly, DoT may proceed with the appropriate act at their end, as there appears to be no legal objection to such transfer,' said sources.

They, however, clarified that permission has not been given yet but it may come soon. Earlier, the government had blocked the proposed merger between Etisalat and Allianz, citing the three-year lock-in requirement under current rules.