Swedish mobile operator Tele2 and cable TV company Com Hem have announced they plan to merge and create a new joint venture.
The firms hope to save around £4 million as a result of the move, as well as the same amount in increased revenue.
Com Hem’s owners will receive a 26.9 per cent stake in the merged entity and SEK 6.6 billion in cash (£594 million).
The companies said the merger would create a leading integrated operator by combining an award-winning mobile network with the fastest national fixed network and the widest range of content in the market. Over recent years, the two companies have become increasingly close with a sustained period of joint strategic development.
"We are delighted to have reached agreement to combine two great Nordic companies to create a leading integrated connectivity provider in the Swedish market," said Tele2 chairman Mike Parton.
Com Hem CEO Anders Nilsson will become the CEO of the enlarged Tele2. He noted: "Merging is the best possible next step for both companies as it will enable us to meet the demands of tomorrow and unleash the power for the best possible digital quality of life in Sweden.”