Xavier Niel Leads $524M Deal to Merge Lifecell and Datagroup-Volia in Ukraine

A group of investors led by Xavier Niel has completed a $524 million deal to merge Ukrainian mobile operator Lifecell with Datagroup-Volia. The move is expected to enhance competition in Ukraine's telecom sector. The European Bank for Reconstruction and Development and International Finance Corporation are providing significant financial support.

A consortium of investors led by French billionaire Xavier Niel has finalized a $524 million acquisition and merger of Ukrainian mobile operator Lifecell with service provider Datagroup-Volia. The investment firms disclosed the successful transaction on Monday.

Lifecell, Ukraine's third-largest mobile provider, is merging with fixed-telecom and pay-TV firm Datagroup-Volia. Formerly fully owned by Turkcell, Lifecell's acquisition was facilitated after a Kyiv court lifted the seizure of shares held by sanctioned Russian billionaire Mikhail Fridman.

The deal, valued at at least $524.3 million, will see the European Bank for Reconstruction and Development and the International Finance Corporation contribute $435 million in loans. The newly formed platform is projected to serve around 10 million mobile users and connect over 4 million via a fixed-access network.

(With inputs from agencies.)