Telia and Sonera to merge

Swedish telecom company Telia is to acquire Sonera of Finland for €6.64bn in stock.

Telia and Sonera are the largest telecom operators in their countries. It is the first time that there has been a cross-border merger of incumbent telecom carriers in Europe.

The merger, to be completed on Tuesday, will create the largest telecoms group in the Nordic and Baltic regions.

Under the terms of the deal Sonera shareholders are to receive 1.5144 Telia shares for each share. The combined group will have its headquarters in Sweden. A new CEO will be appointed from outside the two companies.