The proposed merger would reduce the number of mobile players from four to three in the Spanish market, something the European Commission has been unfavourable towards.
Reuters reported last month that Digi would be sold post-merger assets to appease the commissions competition fears.
The Bloomberg report states that an agreement is now in place, with a deal potentially signed off by the end of the year.
Although the specific assets have not yet be disclosed, it has speculated that Digi could acquire mobile spectrum, which would reduce its reliance on its wholesale agreement with Telefonica to provide MVNO services in Spain.
A wholesale agreement with Orange has also reportedly been discussed in previous months.
Serghei Bulgac, CEO of Digi was reported to have promised an investment of up to €2bn in Spain if it is allowed access to the assets.
MasMovil and Orange signed their agreement to merge in July last year, and despite delays Orange CEO Christel Heydemann seemed confident the deal would be approved by regulators on Orange’s latest earnings call.
Heydemann speculated a deal could be closed in Q124.
