The Overseas Investment Office has consented to telcos Vocus NZ and 2degrees merging, to form a $1.2 billion revenue business that will launch on June 1 this year.
It follows the Commerce Commission clearing the two businesses to merge in March.
After the transaction is finalised, the combined business will drop the Vocus name in favour of 2degrees.
Current Vocus New Zealand and Australia Wholesale chief executive Mark Callander is expected to take the helm of the merged business.
Majority owned by Trilogy International Partners, 2degrees has 1.5 million mobile and 135,000 fixed-line customers.
The telco first became profitable in 2017, having launched in 2009.
2degrees launched 5G service in December last year, with coverage in Auckland, Wellington and Christchurch, using the 3.5 GHz N78 band.
Vocus comes to the deal with 210,000 fixed-line subscribers, 40,000 mobile and 40,000 energy customers.
Part of Australia's Vocus Group, the New Zealand telco also provides service to 1600 enterprise, government and wholesale customers and operates a 4600 km fibre network.
Combined, the merged business will have 1790 employees and compete against Infratil and Brookfield Asset Management owned Vodafone New Zealand and telco incumbent Spark.