stc Group got a green light from the Spanish government to complete a purchase of an almost 10 per cent stake in Telefonica and name a member to operator’s board, with approval coming more than a year after the €2.1 billion deal was struck.

Spain’s Minister of Economy, Trade and Business Carlos Cuerpo announced its Council of Ministers signed-off the investment for 9.9 per cent, with undisclosed conditions attached to protect national interests which have been agreed to by the Saudi operator.

Cuerpo stated authorities conducted an exhaustive analysis on grounds of compliance with current laws and elements including protecting national interests.

In its own announcement, stc confirmed it received approval to increase its voting rights from 4.97 per cent to 9.97 per cent and the right to appoint a board member to Telefonica.

The Saudi operator struck the deal in September 2023 as part of a wider strategy to increase investments outside its home market.

It stated at the time it had no intention to attempting to acquire a majority stake in the Spain-based operator group.

To balance stc’s holding, Spanish investment company Society of Industrial Participations (SEPI) set a goal of holding a 10 per cent stake in Telefonica, which it hit in May.

The move was to ensure the nation’s investment vies with stc as Telefonica’s largest shareholder.