BT Group has entered exclusive talks to buy U.K. mobile operator EE for 12.5 billion pounds (US$19.5 billion), a deal that would help the carrier offer bundles of mobile and fixed services.

The talks don’t guarantee a deal will be reached, BT said in a press release on Monday. But they point toward BT choosing EE over O2, the mobile business it sold to Telefonica 10 years ago. BT and Telefonica had also been in talks last month.

EE was formed through the merger of the T-Mobile and Orange mobile businesses in the U.K. and is jointly owned by Orange and Deutsche Telekom. Under the terms of BT’s proposed acquisition, Deutsche Telekom would own 12 percent of BT and have a seat on its board. Orange would own 4 percent of BT.

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