Orange and MásMóvil have finalized the proposed merger in Spain, to create the country's biggest mobile operator.

The agreement sees both carriers own an equal 50 percent stake in the JV. The new entity will be known as MásOrange.

First announced back in 2022, the merger is estimated to be worth €18.6 billion ($20.1bn), and will create 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.

Earlier this month the Spanish government gave its blessing to the deal, a few weeks after the European Union's antitrust regulator approved the merger after MásMóvil agreed to divest spectrum across three frequency spectrum bands to Romania's Digi.

MVNO Digi will use this spectrum to build its own mobile network, eventually becoming a fourth operator in Spain.

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

In an announcement today (March 26), Orange España managing director Jean François Fallacher has been appointed non-executive chairman of the JV, while MásMóvil CEO Meinrad Spenger has been named as CEO.

In a statement, the JV said that based on preliminary closing accounts, the respective proceeds at closing will be approximately €4.4bn ($4.7bn) for Orange and around €1.65bn ($1.79bn) for MásMóvil shareholders.

“It is a huge honor and an enormous responsibility to serve our more than 30 million customers in Spain," said Spenger. "We are going to try hard to ensure that they continue to be the most satisfied clients in our country. With our JV, the Spanish telecom market has now a stronger company with the capacity to innovate and invest and to serve our clients in the residential and business segment as their trustful partner."

Christel Heydemann, CEO of Orange, added “Today’s announcement is an important stepping-stone in the deployment of Orange’s long-term strategic plan in Europe. By creating a stronger and more sustainable player, the joint venture launched today will help drive innovation and investment in high-speed broadband and digital services in Spain. This is clearly a positive step forward in our overall vision for a strong and thriving telecoms industry in Europe."