Larsen & Toubro Limited (BSE:500510) is weighing a merger between two of its publicly traded software firms, according to people familiar with the matter, as the Indian conglomerate seeks scale to compete with global digital giants. The boards of Mindtree Limited (NSEI:MINDTREE) and Larsen & Toubro Infotech Limited (NSEI:LTI), two software units controlled by the Mumbai-based engineering firm, could consider share swap ratios for the merger as early as next week, one of the people said, asking not to be identified as the information is not public. Deliberations around the merger are ongoing and the plan could be delayed or fall apart, the people said.

A representatives for Larsen declined to comment, while representatives for Mindtree and L&T Infotech couldn't immediately comment.