Spanish telecoms company Telefonica says it has reached a deal to buy Brazilian operator GVT from French media conglomerate Vivendi.

Telefonica says it will pay 4.66 billion euros ($6 billion) in cash as well as 12 percent of the shares in its Brazilian unit, Telefonica Brasil, into which GVT will be integrated.

It says the deal will create the biggest operator of mobile and broadband networks in Brazil, Latin America's largest market.

Telefonica expects to make savings worth 4.7 billion euros from the integration of GVT and Telefonica Brasil.

As part of the agreement announced Friday, Telefonica says it will also sell an 8.3 percent stake in Telecom Italia to Vivendi.

Finalization of the deal depends on approval from state regulators.