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Mergers and Acquistions News

Categories: Telecoms

July 30th 2010, 16:28PM

Vimpelcom, a Russian telecoms company, has acquired the telephone land line provider Foratek Communication.

The firm, who are part of Vimpelcom Ltd, announced today that the acquisition will cost 1.4 billion roubles (£29.6 million).

Foratek Communication owns over 1,200 km of fibre-optic networks in the Urals Federal District of Russia.

According to Reuters, Vimpelcom is the third-largest phone operator in the country and, together with Kyivstar in Ukraine, is Vimpelcom Ltd. They are New-York listed and the majority of their shares are owned by Russia's Alfa-Group and Telenor in Norway.

Since 2009 Vimpelcom has been looking for expansion opportunities as it seeks to establish itself in the burgeoning internet sector.

The group's vice president, Andrey Patoka, said the acquisition would help it to accommodate increasing market demand.

"This deal will allow to increase the length and capacity of Vimpelcom's own trunk line and enable it to meet growing demand in data transfer segment and reduce leasing costs," he said in a statement.

According to en.riau.bu, the Russian Economic Development Ministry has proposed stopping state regulation of tariffs in districts where competition between telecoms operators is fierce.
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