(Reuters) – Cellcom Israel Ltd <CEL.TA>, Israel’s largest operator, said on Tuesday it would buy rival Golan Telecom for 590 shekels ($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, according to Israeli media reports.

Cellcom said it 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 <BEZQ.TA> Pelephone unit also submitted https://www.reuters.com/article/us-golan-m-a-bezeq/bezeqs-pelephone-bids-for-israeli-mobile-rival-golan-telecom-idUSKBN20B0N5 a bid to buy Golan for 710 million shekels on Monday.

(Reporting by Ayanti Bera in Bengaluru and Steven Scheer; Editing by Anil D’Silva)