Denmark’s largest telecom company TDC Group is set to acquire the Nordic TV business of Swedish media conglomerate Modern Times Group (MTG) to form a convergent media and communications provider.

The combined company will have the potential of reaching more than 10 million households across the Nordics, according to TDC Group.

As part of the deal, whose value is estimated at $2.5 billion, MTG’s Entertainment division and MTG Studios’s assets – including the TV channel TV3, the satellite TV platform Viasat and the streaming service Viaplay — will be folded into TDC Group.

MTG Nordics, which includes broadcasting, streaming and distribution operations in Sweden, Denmark, Norway and Finland, is also selling its production outfit Nice Entertainment and the distribution banner DRG to TDC Group.

“The combination (of TDC Group and MTG Nordics) will significantly strengthen our innovation capabilities enabling us to provide Nordic consumers with great quality content and much more flexible next generation entertainment solutions,” said TDC Group CEO Pernille Erenbjerg. “This company will be the first of its kind in Europe,” added Erenbjerg, who will serve as CEO for the new combined outfit.

Anders Jensen, MTG Nordics’s chairman, will be deputy CEO of the new banner which will is expected to reach close to 3 million TV subscribers across Sweden, Denmark, Norway and Finland.

Jensen said the company’s goal is to “create a new, truly Nordic company with the intention to further invest in unique local content, strengthening our combined entertainment and access products and the Nordic content market as a whole.”

“Together, we will commit ourselves to continue to evolve our proud tradition of creating and telling the most compelling stories in the Nordic region,” added the executive.

In the last couple years, MTG Nordics has delivered a flurry of upscale original dramas and features, including “SuperSwede,” and top-rated series such as “Veni Vidi Vici,”“Black Lake” and “Swedish Dicks” (pictured). The group’s Viaplay has become the Nordics’s biggest local streaming service.