Berlin  - German mobile phone operator Freenet has agreed to take over rival Debitel to create the third-largest company in the sector in Germany, in a deal worth 1.6 billion euros (2.5 billion million dollars).

Freenet's board approved the planned takeover, which needs regulatory approval, late Sunday.

Debitel's owner, investment company Permira, is to receive a 25- per-cent stake, becoming the largest shareholder in the new company, which will have 19 million clients.

Major Freenet shareholders United Internet and Drillisch oppose the takeover and are planning a counter-offer. (dpa)