The Italian government is preparing a decree ahead of the long-awaited merger of Italian state broadcaster RAI Way and El Towers.

A merger between the two is expected to create a TV towers group worth more than €2 billion ($2.17bn).

First reported by Italian publication, La Repubblica, cabinet undersecretary Alberto Barachini said the merger "is a concrete hypothesis but still requires some reflection."

Another official noted that the decree could allow state-owned broadcaster RAI to cut its stake in Rai Way below 30 percent.

RAI, which currently owns a 65 percent stake in Rai Way, will retain a majority stake if the plans go ahead, adding it would remain "open to assess further opportunities to develop Rai Way's business."

Earlier this year, RAI first announced plans to sell a stake of up to 15 percent in its TV tower company Rai Way. At the time, the company said proceeds from the sale would fund its 2024-26 Industrial Plan, which is worth €225 million ($245m), and prioritizes digital transformation to ensure financial sustainability.

In March 2022, former Prime Minister Draghi approved a decree allowing RAI to cut the stake in Rai Way to 30 percent from the current 65 percent. It was a move that was expected to trigger consolidation in the television and radio mast sector.

However, Economy Minister Giancarlo Giorgetti, who served as industry minister under Draghi, publicly criticized the scheme as he felt that RAI should not have control of the group stemming from the merger.

Founded in 1924, RAI is one of the biggest broadcasters in Italy and operates many terrestrial and subscription television channels and radio stations.

EI Towers is 40 percent owned by Italy's top commercial broadcaster MediaForEurope (MFE), while Italian infrastructure fund F2i holds the remaining 60 percent.

Separately, Rai revealed this week that it plans to invest €140 million ($151.6m) in developing data centers in Italy.