Digi Reaches Orange-Masmovil Deal Before Possible Merger (1)

Digi Communications NV has reached a preliminary deal to acquire assets from Orange SA and Masmovil Ibercom SA, potentially clearing the path for its two bigger rivals’ €18.7 billion ($20.5 billion) merger, according to people familiar with the matter.

The agreement — which will help Orange and Masmovil meet European regulators’ demands on their combination in Spain — could be signed by the end of the year, capping months of negotiations, said one of the people, who asked not to be identified because the discussions are private. The preliminary agreement is non-binding, the person said. No final decision has ...