Cellcom Israel, the largest mobile operator, has agreed to buy smaller rival Golan Telecom for 590 million shekels or $172.59 million.

The company will also forgive 130 million shekels of debt that Golan owes to the company or its use of Cellcom’s network.

Cellcom would pay the amount in two installments – 413 million shekels on completion of the transaction and 177 million shekels within 3 years from completion.

Bezeq Israel Telecom’s Pelephone unit also submitted  a bid to buy Golan for 710 million shekels.