MTS, Russia’s largest mobile operator, is seeking permission to acquire smaller regional rival SMARTS, Russia’s state competition watchdog said late last week. In a statement, the Federal Antimonopoly Service (FAS) confirmed that a petition was filed in July and that the body was considering the request, reports Reuters. The report claims that MTS has offered to buy 97 percent of SMARTS for a rumoured US$1 billion. However, an MTS spokeswoman refused to elaborate on the deal ahead of the regulatory approvals.

SMARTS operates in the Volga region in central Russia and is the country’s seventh-largest mobile operator with around 4.05 million subscribers as of June 30. According to Reuters, SMARTS shareholders have been looking to sell the company for some years and both MTS’ two main rivals – MegaFon and VimpelCom – have been previously linked with the operator. In December last year, it was reported that VimpelCom had offered US$750 million for the business, which both companies denied.