Kohlberg Kravis Roberts and Permira, the private equity groups, on Wednesday combined their television holdings to create a European broadcaster meant to rival market leader RTL.

Munich-based ProSiebenSat.1, in which KKR and Permira control 88 per cent of the voting stock, is buying shares in SBS Broadcasting, the Luxembourg group, from the private equity groups and minorities in a debt-financed €3.3bn ($4.4bn) deal.