Nexstar Media Group Inc. agreed to buy TV station operator Tegna Inc. for $3.5 billion in a deal that stands to dramatically expand Nexstar’s reach and test the Trump administration’s appetite for regulatory reform.

The announcement Tuesday followed a report from The Wall Street Journal on Monday evening that Sinclair—another local TV competitor—also offered to merge its broadcast business with Tegna. That proposal would value Tegna at roughly $25 to $30 a share, the Journal reported.

To close the deal, Nexstar will need approval from the Federal Communications Commission, which could cement its position as the biggest provider of local TV in the U.S.