European and Spanish regulators don't have concerns regarding competition in the deal between Vodafone and ONO, through which the British telco will buy 100% of the major fibre operator.

According to Reuters, sources have said that the €7.2 billion deal has been given the green light.

Vodafone is looking to secure infrastructures in Spain by managing ONO's own fibre-to-the-home (FTTH) network. The Spanish company agreed to the buyout in March as a way for the group to deal with its huge debt.

By purchasing ONO, Vodafone will start directly competing with market leaders both in the telecoms and pay-TV sectors. Telefónica, which is experiencing a similar situation, consolidating its position in the pay-TV arena through the acquisition of Canal+, will likely be Vodafone's main competitor.

Through the move, Vodafone will have access to seven million homes connected by fibre and coaxial cable. ONO currently has one million TV subscriptions, over 1.5 million Internet customers, 1.8 telephony customers and a million mobile subscribers. The deal will also wipe out at a stroke ONO's €3.4 billion losses which were revealed in the company's financial results for 2013.

Although the European Commission's decision is not yet public, the Reuters' source said "there are no issues, the deal will be cleared by the European Commission without conditions". The decision of the EU antitrust watchdog will be unveiled by 2 July.