Vivendi confirmed it has entered “exclusive negotiations” with Etisalat for the sale of its 53 per cent shareholding in Maroc Telecom.

The Etisalat offer is worth €4.2 billion to Vivendi, which includes a dividend for 2012.

While the companies are clearly entering the end game, this may not be a smooth process.

Vivendi said the final agreement is subject to consultation with the French Works Councils and negotiating approvals between Etisalat and the Moroccan government.

Discussions are also underway with a group of Moroccan institutional investors, which could lead to a possible investment in the business.

According to reports earlier this month, the authorities in the North African country want Etisalat to work with a local partner as part of its approval conditions for the deal.

It was also said that the Moroccan government is not against the Etisalat deal in principle.

Vivendi and Etisalat intend to close the transaction before the end of the year, subject to approvals.