MásMóvil and Orange are set to receive approval from the European Commission for their proposed Spanish merger, reports Reuters.

The publication cites two sources familiar with the matter, with the merger set to consolidate the number of telcos in Spain from four to three.

The deal, which was first agreed in 2022 between France's Orange and Spanish telco MásMóvil, is estimated to be worth €18.7 billion ($20.3bn).

Orange is the second biggest telco in Spain, while MásMóvil is the fourth biggest

Last year, the European Commission had previously said such a deal would reduce competition and increase costs in Spain, and warned the operators would have to address a number of competition concerns before any approval is given.

To address the Commission's concerns, the two operators signed a deal to sell some assets to Romania's Digi Communications to mitigate the EU fears.

It's not clear which assets will be sold, but spectrum licenses are likely to be included.

The EU is set to give a final decision on the merger by February 15, 2024.

Another Spanish telco, Vodafone, agreed to sell its Spanish operations to UK investment firm Zegona for $5.3bn in October.

Vodafone had previously been linked with a merger with MásMóvil, before MásMóvil chose Orange.