Merger Between Two Israeli Mobile Networks
Published on: 9th Nov 2015
Note -- this news article is more than a year old.
Israel's Cellcom has announced that it is buying rival mobile network, Golan Telecom for around USD300 million.
However, the deal is subject to regulatory approval, which is expected to be difficult to secure.
Golan is one of the four mobile network operators in Israel in addition to Cellcom Israel. It launched operations in 2012 and primarily provides cellular services to approximately 900,000 customers (as of November 2015), with a comparatively low churn. Golan is expected to end 2015 with total revenues exceeding NIS 500 million.
Golan is already buying national roaming capacity from Cellcom for the areas where its existing network cannot reach, although it has recently been paying less than the agreed amount.
Ami Erel, the Company's Chairman of the Board, said: "The acquisition of Golan Telecom will allow us to add a low-cost brand to our portfolio, and I'm confident that Cellcom's management will be able to successfully combine Golan's operations as the Company's low cost brand. I thank the Company's controlling shareholders for their unrelented support and assistance in enhancing value for the Cellcom Group."
Cellcom said that if the deal is completed, then it intends to maintain Golan Telecom as an independent company.