MediaForEurope NV , the television group of former Italian Prime Minister Silvio Berlusconi, announced late Monday that it will complete the planned merger with its subsidiary Mediaset España .

The deal is part of MFE's plans to consolidate the European television sector, which it sees as the answer to the growing challenges posed to traditional broadcasters by streaming giants and Internet advertising platforms.

Registered in the Netherlands and generating most of its revenues in Italy, MFE last year secured control of around 83% of the capital of its listed television subsidiary in Madrid through a takeover bid for the stake in the Spanish broadcaster that it did not already own.

MFE said at the time that it would go ahead with its plan to consolidate its Spanish business through a merger by absorption of the local subsidiary.

MFE said Monday it will pay 3.2687 euros per share to Mediaset España investors who decide to exercise their right of withdrawal at a shareholders' meeting to be held in March.

Mediaset España investors who back the merger will receive 7 class A shares of MFE for each Mediaset España share.

MFE, which is listed on the Milan Stock Exchange, stated that its class A ordinary shares will also be listed in Spain.

(Reporting by Elvira Pollina; editing by Gavin Jones; Spanish editing by Dario Fernandez)