FX.co ★ Megafon to acquire 4G provider Scartel

Despite overall recession and instability of economic forecasts, capital flows never stop. A large purchase was announced this week. Major companies do not miss profit, even if everybody talks about a new round of crisis and complains about a lack of finance. This time, the sum of the deal is a seven-digit record of $1.18 billion. The governing body of one of the leading mobile network operators in Russia, Megafon, approved buying the full share portfolio of Scartel rendering its services under the name Yota. The deal will strengthen significantly Megafon's position in a fast-growing segment of the telecoms market. In the nearest future, the operator is going to be a leader and a serious counterpart in the race to provide high-speed internet. The merger of two businesses will help to reach a new level in providing 4G networks. “This deal will allow to increase highly economic effectiveness due to operation with the 4G/LTE network,” Megafon's CEO Ivan Tavrin commented the event. The Board of Directors is confident in its decision investing plenty of money as analysts expect this standard to become the most popular worldwide soon. Scartel operating under the Yota brand provides wireless services by means of the ultrafast Long Term Evolution (LTE) technology.