BSkyB will become the leading pay-TV provider in Europe after the deals, the latest example of traditional entertainment companies reinforcing their operations to compete against more nimble Internet rivals.

The combined company will have operations in Britain, Ireland, Germany, Austria and Italy. Sky Italia is Italy's biggest pay-TV operator while Sky Deutschland has been growing strongly.

The EU competition watchdog can approve the deal without conditions if it does not see any antitrust issues or demand concessions to allay concerns.

(Reporting by Foo Yun Chee, editing by William Hardy)