Rostelecom: Rostelcom Focused on Acquiring Megafon

Feb 08, 2023 | Posted by Abdul-Rahman Oladimeji

Russian mobile provider Rostelcom is apparently interested in acquiring Megafon, according to local publications. The prospective agreement is being explored at the government level, according to CNews. Rostelcom already controls another Russian mobile provider, Tele2, and is the sole proprietor of the firm. Megafon, which was created in 1993 and is now controlled by Alisher Usmanov's holdings (USM), is one of Russia's major telecom carriers. The possible acquisition of Megafon might cost Rostelcom $8.7 billion, according to the report, which quotes Finam analyst Leonid Delitsyn. 

According to USM, Rostelcom has previously expressed interest in acquiring the firm, while CNews reports that Rostelecom gained authorisation from the regulators to acquire Megafon at the end of last year. Nonetheless, Veon's ambitions to sell its Russian VimpelCom division may have an influence on the value of a prospective transaction. This agreement was recently rejected by the Russian government and sent back for changes. Veon's ambitions to sell VimpelCom are believed to throw a wrench in the works, as Delitsyn adds that the moment is ripe for purchasing an operator, as the lack of available telecommunications equipment lowers the asset's value. 

Rostelcom broke ground on an Arctic data center in Murmansk, Russia, in what the company described as its first facility constructed in the Arctic zone of Russia. The data center is located in the Murmansk Oblast, in the far northwest of Russia near Finland.