A deal that will see Atlantic Tele-Networks, the American telecommunications company, take a controlling interest in KeyTech has passed one of its last hurdles, with the Regulatory Authority of Bermuda granting approval.

That decision now goes to Grant Gibbons, the economic development minister, for final approval.

Reacting to the news that the deal has moved a step nearer to completion, Lloyd Fray, KeyTech’s chief executive officer, said: “We are delighted to have received approval from the Regulatory Authority. Other governmental and regulatory consents are still pending, and we look forward to closing the transaction promptly after their receipt.”

The deal, which was backed by KeyTech shareholders in October, gives ATN a 51 per cent interest in KeyTech in exchange for its shares in CellOne plus approximately $42 million in cash.

The result would leave KeyTech as the sole owner of CellOne, while ATN would have a controlling interest in KeyTech. KeyTech’s subsidiaries include Cable Co and Logic (which includes the merged Bermuda CableVision).

When the deal is complete ATN and Digicel will dominate the island’s telecommunications market. Digicel took over Bermuda Telephone Company last year.

At its April 7 board meeting, the Regulatory Authority approved the proposed consolidation of ATN and KeyTech, and said the decision would be sent to the minister for approval.

Atlantic Tele-Networks is a trading company that invests in the communications and renewable-energy industries. It is based in Massachusetts and has a connection with Bermuda that stretches back to 1998 when it was the primary investor in CellOne, which merged with KeyTech as an affiliate in 2011.

ATN is listed on the Nasdaq stock exchange and has a market capitalisation of $1.2 billion.

Among ATN’s subsidiaries is Commnet, which provides telecommunications to much of the central and western US states. ATN also has telecoms subsidiaries in the US Virgin Islands, Aruba, and Guyana.