Brazil based telecom company Claro is reportedly in talks to acquire TIM mobile service provider from Telecom Italia.

The deal is said to be worth close to around eight billion Euros. The news was first reported by Brazilian daily O Globo which said that the deal was agreed up this Friday and it took two weeks after Claro revised upon their earlier offer.

Market experts believe that the two companies would make this news public in the coming days. TIM has however denied any such deal and said in a statement: “Today’s news about the likely sale of TIM … is groundless.”

Sources say that there are two companies currently pursuing an acquisition deal for TIM. These two companies are America Movil and Vivo/Brasil Telecom.

If the deal goes through, it would make Claro the largest player in the wireless sector in Brazil.