Russia's second and third-largest mobile telecoms operators Megafon and VimpelCom jointly announced that both companies will end their Euroset retail joint venture.
Euroset is Russia’s largest mobile and electronics retail network and is co-owned by both VimpelCom, the Russian subsidiary of VEON, and MegaFon.
Based on the agreement reached between the parties, MegaFon will acquire VimpelCom’s 50% interest in Euroset, resulting in MegaFon owning 100% of Euroset, and VimpelCom will acquire half of Euroset’s retail stores.
The agreement is subject to relevant regulatory approvals and other conditions precedent. The transaction will be completed only after such conditions precedent have been satisfied and regulatory approvals have been obtained.
Kjell Morten Johnsen, CEO of VimpelCom
The maturity of the Russian telecom market is driving the operators' retail focus from Sim card sales to retention and better services for existing customers, which requires operators to develop their own high-performing retail chains. The transaction reinforces VimpelCom’s monobrand strategy and will allow us to double our retail network in Russia.
Sergey Soldatenkov, CEO, MegaFon
We are grateful to Veon for our partnership in retail over the last five years. The transaction will allow MegaFon and Veon to pursue their independent retail strategies and optimise mobile distribution in Russia. MegaFon will be able to improve quality of service for our clients. Euroset will remain and continue to evolve as a mobile retailer.
