Orange, Masmovil Sign Deal to Forge $19 Billion Telecom Unit (1)

Orange SA and Masmovil Ibercom SA reached a binding agreement to combine their Spanish businesses to create the country’s biggest telecommunications company by clients after exclusive merger talks announced in March.

The transaction is based on an enterprise value of 18.6 billion euros ($19 billion), according to a statement Saturday. In March, the companies said the venture would have a combined enterprise valuation of 19.6 billion euros.

The new company will take the form of a 50-50 joint venture, co-controlled by Orange and Masmovil. The transaction is subject to approval from antitrust authorities and is expected to close by ...