The deal has an estimated value of €16 billion and could be announced as early as today following a board meeting, according to the Financial Times.
Two sources familiar with the situation claimed that details of the agreement are still being negotiated, but one possible outcome could see KPN acquire a minority stake in Telefónica Deutschland, subsequent to Telefónica’s successful acquisition.
KPN’s largest shareholder, Carlos Slim, is thought to be backing the deal which has now reached its tenth year of deliberation.
Should a deal be agreed, Telefónica is expected to conclude with a 50% stake in the combined entity, with the Spanish multinational paying $6 billion, and the overall value standing at €16 billion.
EU authorities may disprove the merger over concerns with in-market consolidation, but sources told the Financial Times that both companies may offer concessions to sweeten the transaction.
Telefónica was reported to be reconsidering its partnership with KPN earlier this year.
