VimpelCom has formally announced a $6.6 billion takeover of Weather Investments, the holding company controlling Orascom Telecom and Wind.

 

When the deal closes it will mark the final transformation of VimpelCom from Russia’s second largest mobile operator to the sixth largest mobile operator in the world. For Naguib Sawiris, the boss of Weather Investments, a closed deal is a ringing endorsement of his portfolio investment strategy.

 

 

Following Bharti’s takeover of Zain’s African operations, this is now the second blockbuster telecoms deal in 2010, largely driven by emerging market players.

 

The newly expanded VimpelCom will have operations in a total of 20 countries in four continents. In Russia the press is already hailing this as the biggest international deal by a Russian company. With approximately 174 million customers, VimpelCom is now the sixth largest mobile operator in the world after China Mobile, Vodafone, Telefonica/O2/Movistar, America Movil, and Bharti.

 

A VimpelCom–Weather tie-up will create a mix of developed and emerging market assets. This will include Weather’s assets in Algeria, Bangladesh, Pakistan, and Tunisia, plus Wind in Italy and the indirect equity stake in Globalive Wireless in Canada. VimpelCom has confirmed that Orascom Telecom in Egypt, Wind Hellas in Greece, and Koryolink in North Korea will not be included in the final deal.