South African mobile phone operator MTN Group and India's Reliance Communications have extended their exclusive merger discussions by three weeks, edging the deal, which would be the 12th largest tie up between telecoms groups, a step closer.

In a statement to the Johannesburg Securities Exchange this morning following the expiry of the first 45-day period of exclusive negotiations yesterday, the South African operator said: "MTN has agreed to continue its negotiations with Reliance in relation to such potential business combination...There is no certainty that these discussions will result in a transaction."