The Antimonopoly Committee of Ukraine has approved the acquisition of the operator lifecell by the French company DVL Telecom, which opens the way to the creation of a powerful telecommunications holding in Ukraine.
Merger of telecom giants
Acquisition permit
On July 25, the Antimonopoly Committee of Ukraine (AMCU) approved the purchase of Ukrainian operator lifecell by DVL Telecom. This decision was published on the official website of AMCU.
Deal details
DVL Telecom, a subsidiary of the French investment company NJJ Capital, whose owner is billionaire Xavier Niel, received permission to acquire control over LLC Global Bilgi, Lifecell and Ukrtower. This decision was made after the deadline for considering the application expired on July 18.
Background of the deal
On April 16, the Court of Appeal canceled the seizure of 19.8% of lifecell's corporate rights. A consortium of investors, which includes French billionaire Xavier Niel, investment company Horizon Capital and Mykhailo Shelemba, agreed to acquire all Ukrainian assets of Turkcell, including lifecell, tower operator UkrTower and call center network GlobalBilgi for $525 million.
Future plans
NJJ intends to merge the assets of lifecell and "Datagroup-Volya" into a single company that will provide comprehensive mobile and fixed communication services, as well as the Internet. The management of the united platform will be headed by Mykhailo Shelemba, the current CEO of Datagroup-Volya, and Pierre Danon will retain the position of chairman of the supervisory board.
Investments and development
After the merger, "Datagroup", "Volya" and lifecell will receive investments in the amount of 435 million dollars for further development. Financing will come from the European Bank for Reconstruction and Development (EBRD) and the International Finance Corporation (IFC). In general, the agreement on the acquisition of "Datagroup-Volia" and lifecell will bring 1.5 billion dollars of investment to Ukraine.
Glossary
- AMCU - Antimonopoly Committee of Ukraine, a state body that ensures the protection of economic competition
- lifecell - Ukrainian mobile operator
- DVL Telecom - French telecommunications company
- Xavier Niel - French entrepreneur and investor in the field of telecommunications
- Turkcell - Turkish telecommunications company, former owner of lifecell
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Answers to questions
What did the Antimonopoly Committee of Ukraine decide about lifecell?
Who is behind the acquisition of Turkcell's Ukrainian assets?
What plans does NJJ regarding pooling of assets?
Who will lead the combined company?
What investments will the combined company receive?
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Discussion of the topic – AMCU approved the acquisition of lifecell: French DVL Telecom enters the Ukrainian market
The Antimonopoly Committee of Ukraine allowed the French company DVL Telecom to purchase the Ukrainian mobile operator lifecell. This decision opens up new prospects for the development of the telecommunications market of Ukraine.
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Oleksandr
Wow, this is really big news for the telecommunications market of Ukraine! 🤔 I wonder how this will affect the quality of services and prices for consumers?
Sophie
Yes, Oleksandr! I think that the union of lifecell and Datagrup-Volya can create a strong player in the market. Perhaps this will lead to better bundled offers and innovation. 📱💻🌐
Giovanni
Sophie, you are right. This deal could bring new technology and investment. I have heard that NJJ Capital has experience in telecom development in Europe. Perhaps they will bring something new to Ukraine.
Maria
I am impressed by the investment amount - $1.5 billion! 😮 This can really change the telecom landscape in Ukraine. I wonder how this will affect other operators?
Hans
Phew, another merger, another promise of a better future. I've seen it before - big companies get even bigger, and prices only go up. Nothing good for ordinary people will come out of this.
Oleksandr
Hans, I understand your skepticism, but let's give them a chance. Maria is right about the investment - it can lead to better infrastructure. And competition with Kyivstar can restrain prices. 🤞
Sophie
I agree with Oleksandr. In addition, the EBRD and IFC are participating in the financing, which is a good sign. They usually require transparency and adherence to international standards. 👍
Giovanni
It will be interesting to see how they implement the idea of a triple package of services. If done well, it can be very user-friendly. And it may force other operators to improve their services as well. 🚀