French telecoms group Orange has announced an agreement to snap up the 50 percent stake in Spanish telco MásOrange that it doesn’t own for €4.2 billion ($4.84bn).

In an announcement last week, Orange said it has reached a non-binding agreement with Lorca to acquire the stake in its Spanish joint venture.

Lorca is owned by private equity funds Cinven, KKR, and Providence.

The French telco and MásMóvil finalized their merger in Spain last year to create the country’s biggest mobile operator. As such, both telcos had a 50 percent stake in the newly formed MásOrange.

First announced back in 2022, the merger was estimated to be worth €18.6 billion ($21.4bn) and created a combined business of more than 37 million customers, including mobile and fixed-line subscribers.

Completion of the deal was delayed due to fears of competition in Spain, with the merger reducing the number of telcos from four to three.

However, reports earlier this year suggested that Orange was interested in a full buyout of MásMóvil’s stake in the JV.

“This transaction will accelerate Orange’s strategic plan “Lead the Future” and further strengthen Orange’s position in Spain, the Group’s second-largest market in Europe,” said Orange in its announcement. “With full ownership, Orange confirms its long-term industrial commitment in Spain, and its confidence in MasOrange and its management to create value for all stakeholders.”

Orange added that it expects the signing of a binding agreement before the end of this year, while it anticipates the transaction to close during the first half of next year.