Portugal Telecom finally announced it had got approval for its stake acquisition plans in Brazilian telecoms firm, Tele Norte Leste Participacoes or Oi, as it is mostly known.  The Brazilian telecoms industry regulator, Anatel, gave the Portuguese state owned firm the green light for the stake acquisition. Portuguese Telecom is seeking to acquire a stake in Brazilian phone carrier, Tele Norte Leste Participacoes, which operates under the Oi brand.

The deal for the stake acquisition was first entered back in July, when Portuguese Telecom agreed to remit around $5 billion for an undisclosed stakes in the Brazilian firm. However, Tele Norte Leste Participacoes has to set off its debts with the Brazilian government for the deal to go through. The company owes $44 million related to the Telecommunications Fiscalization Fund, or Fistel.

Tele Norte Leste Participacoes or Oi is hopes the new partnership will allow both companies to gain a presence in Brazil, the largest phone market in the Americas after the US and to expand overseas. Oi is also planning a $7 billion share issue to raise fresh capital. But even so, the approval is only preliminary but it paves the way for the Portuguese firm to go ahead with its investment plans, the purchase of $5 billion worth of shares in the Brazilian phone carrier.

Anatel, Brazil’s telecommunications industry regulator, said the purchase can go forward after 74 million reais ($43.7 million) are paid in overdue debt owed to the Fistel fund that helps pay for the oversight of the industry. During a press conference briefing on the deal, Joao Rezende, an Anatel counselor said the deal creates no cross shareholdings, has no conflicting (phone) licenses thus carries no potential hurdles from the operational point of view.

Zeinal Bava, Portugal Telecom Chief Executive Officer has repeatedly said Brazil is the lifeblood of the company and offers the best platform for growth. Tele Norte Leste Participacoes SA is Brazil’s biggest phone company. Portugal Telecom SGPS SA is based in Lisbon and is seeks to maintain a foothold in Latin America’s largest economy via investments.

The Portuguese firm is keen on maintaining a presence in Brazil, a market the Portuguese government considers crucial. Speculation had been rife back in June and July over a potential move for the Oi stake.