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UPDATE 1-Ages withdraws challenge to German road toll contract

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FRANKFURT, Sept 20 (Reuters) - The Vodafone-led Ages group said on Friday it had withdrawn a legal challenge against a German road toll contract awarded to the ETC consortium, led by Deutsche Telekom , after striking a partnership deal.

From next year, the German Transport Ministry expects to collect 3.4 billion euros ($3.34 billion) in tolls annually from trucks rolling over Germany highways, up to 20 percent of which could go to the road toll operator over the next 12 years.

Ages, which comprises Vodafone and filling station chains Aral and Shell , said that under the deal ETC would use some of Ages' services for the multi-billion-dollar contract.

"Conclusion of the negotiations (between Ages and ETC) should come soon. This makes certain that the building and operation of the new toll system will not be delayed," Ages said in a statement.

Sources told Reuters on Thursday the consortia were in talks about a possible partnership deal.

The government awarded the contract to the Telekom/DaimlerChrysler consortium, but Ages complained and lodged an appeal with a regional court earlier this week. The German cartel office had already rejected an appeal earlier this month.