Vodafone has agreed to buy Spanish company Ono for Eu7.2 billion in order to expand its operations in Europe.

Ono is owned by a private equity company, providing cable TV and internet services to over 1.9 million customers in Spain.

Vodafone boss Vittorio Colao said the deal was "an attractive value creation opportunity".

Vodafone has said it plans to spend up to £25 billion of the £84 billion it generated from the sale of its stake in Verizon Wireless to invest in its core European networks.