Online travel firm MakeMyTrip will acquire rival ibibo in an equity deal that will create one of the leading travel groups in India. South Africa's Naspers and China's Tencent Holdings are selling ibibo Group to MakeMyTrip in exchange for an issuance of new shares by MakeMyTrip, the company said in a statement.

Upon closing of the transaction, MakeMyTrip will own 100 per cent of ibibo Group. Naspers and Tencent will become the single largest shareholder in MakeMyTrip, owning a 40 per cent stake and will contribute proportionate working capital upon closing, it added.