BERLIN (AP) — Deutsche Telekom AG and France Telecom-Orange say they plan to set up a joint venture for purchasing activities that they hope will result in savings of some euro1.3 billion (nearly $1.9 billion).

The German and French phone companies said they plan to combine their purchasing activities in several areas under a joint venture in which both will have equal shares.

The joint venture, which is to be set up in the fourth quarter, will require antitrust clearance.

The companies argue that the plan will improve their competitiveness and that suppliers will benefit from the harmonization of equipment. They are predicting potential savings of euro1.3 billion by the time the venture is three years old.