German regulators have given Telecity the green light to proceed with the all-share merger it has in the works with Interxion Holding.

Both companies specialise in colocation data centre services. The new entity created as a result of the merger is expected to have the combined value of $4.5 billion (£3.07 billion).

Shareholders in Telecity will be given a 55 per cent stake in the combined company, with Interxion shareholders received the remaining 45 per cent. The new firm will be listed on the London Stock Exchange.

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