India’s largest mobile phone company, Bharti Airtel, has resumed merger talks with South Africa’s MTN, a year after a previous plan to join up was abandoned.

The two firms are in talks for Bharti to take a 49% stake in MTN, while the South African company would get a 36% stake in the Indian business.

Together they would become the world’s third biggest mobile phone firm, with more than 200 million customers. Talks failed last year due to a dispute over who would lead the merged group.

The two firms, which have combined annual revenues of more than $20bn (£13bn), said talks were at an early stage. The terms of the merger would include an exchange of both cash and shares.