TeliaSonera has announced plans to combine its fixed line and mobile subsidiaries in Lithuania to strengthen its proposition in the Baltics.

The Scandinavian operator said it is merging fixed line opco Teo with mobile player Omnitel to provide customer with a “fully converged” offer.

Teo will acquire Omnitel for €220 million on a cash and debt-free basis, with the acquisition expected to be finalised in Q1 2016.

TeliaSonera owns 88 percent of TEO and 100 percent of Omnitel.

The operator said it expects to generate annual synergies of approximately €10 million following the merger.

In the three months to June, TeliaSonera said a rise in the number of TV and fixed broadband customers helped push sales in Lithuania up 4.5 percent to SEK 756 million (€81 million).

Robert Andersson, Chair of the Board of Teo, said: “Consumers no longer make a distinction between fixed and mobile services and the demand for converged offerings are steadily increasing.

“The combination of Teo and Omnitel will create a leading, fully converged telecom operator and strengthen the market position through clear synergies and enhanced customer proposition.”

[Read more: Serving households, not individuals, is a necessity says Orange Deputy CEO]

TeliaSonera has turned its attention to strengthening its European business following its exit from Eurasia and the collapse of its proposed tie-up with Telenor Denmark last month.

The company also announced an organisational reshuffle last month in an attempt to improve efficiency and customer relations.

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