France’s Minister of the Economy, Finance and Industry approved a deal that will consolidate the country’s two satellite-TV providers – Canalsat and TPS into a single unit.

In December, Vivendi Universal, owner of Canal+ Group, and TF1 and M6, which own TPS, signed a draft agreement to combine the pay-TV businesses. Vivendi will be the majority owner of the new entity, taking a 65 percent stake, while TF1 and M6 will share a 15 percent stake. The remaining 20 percent of the company will be held by Lagardere.

“This authorization is an important step in Canal+ Group’s development as it creates an opportunity to build a significant French player in the film and TV segment, capable of competing with major foreign media companies and telecoms operators,” Vivendi said in an Aug. 31 statement. “The new entity will help give fresh momentum to the French television and film market.”

The transaction is expected to be completed in the fourth quarter, Vivendi said.