Brazil's Embratel Participacoes will invest BRL2.2 billion ($944 million) in mobile firm Claro. The strategic investment is part of the continuing merger of Mexican billionaire Carlos Slim's Brazilian operations, according to The Wall Street Journal (WSJ).

Claro and Embratel are both controled by America Movil SAB de CV, a company owned by Slim. America Movil also owns cable television division Net Servicos de Comunicacao SA. Earlier in 2013, America Movil revealed a plan to merge its Brazilian operations, the report detailed.

Under the terms of the strategic deal, Embratel will invest the said amount in exchange for a stake in privately held Claro. On Thursday, the company said this move is part of a plan to integrate the group's fixed and mobile divisions, the report stated.

Embratel is the third-biggest fixed-line phone company in Brazil in terms of market share. Claro, on the other hand, is the third biggest mobile company in the country, WSJ reported.