MegaFon and VimpelCom close Euroset

MegaFon and VimpelCom close Euroset

Russia's two largest mobile network operators MegaFon and OJSC VimpelCom (the Beeline brand) decided to freeze the Euroset retail chains brand, MegaFon's Operating Director Anna Serebrennikova said today.

Serebryanikova explained that they decided to freeze the Euroset brand, so that it could be used by no one in the future.

In February, OJSC VimpelCom and MegaFon ended their Euroset retail joint venture, resulting in MegaFon now owning 100% of Euroset with all of its debt and liabilities. While PJSC VimpelCom acquired half of Euroset’s retail stores and pays to MegaFon 1.25 billion rubles.

In May, the merger of the Euroset and Svyaznoy retail chains was completed by exchanging shares in Euroset for a share in Svyaznoy group which amounted to 25% plus 1 share after completion of certain conditions. Then it was said that the Euroset brand will be discontinued in approximately a year from form then and all its stores will be rebranded under the Svyaznoy brand.

According to the press release, the company will change the focus of its commercial strategy from SIM-cards, handsets and accessories sales to modern digital electronics and solutions and VR/AR devices.

"This strategy will result in the transformation of Svyaznoy into a retailer which will actively develop its own e-commerce platform and omnichannels," the press release says.

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