Norwegian telecommunications company Telenor ASA, has announced today it has agreed to buy Vodafone Group Plc's Swedish business for 1.04 billion euros ($1.2 billion). Vodafone Sweden is the country's third-largest mobile-phone company.

Both companies say the acquisition of Vodafone Sweden will enhance Telenor's position in Sweden, while increasing Telenor's Scandinavian mobile customer base by 37 per cent, totalling 5.6 million subscribers.

The purchase from Vodafone doesn't mean that Vodafone is leaving Sweden. Telenor and Vodafone say they have agreed the terms of a Partner Network Agreement in Sweden, allowing Telenor, Vodafone Sweden and Vodafone customers to "benefit from Vodafone's global brand, products and services in Sweden."

Vodafone Sweden's lineup of the BlackBerry 7100v, BlackBerry 7290 and BlackBerry 7730 should not be affected by the transaction, which is expected to close early next year.