Rostelecom buys Lukoil’s telco division

16 Nov 2020

Russian communications giant Rostelecom has signed a final agreement to acquire 50.1% of Lukoil-Inform, the telecommunications business of major oil and gas firm Lukoil. Call/put options enable Rostelecom to increase its stake to 100% in 2023, while the total deal value will depend on Lukoil-Inform’s financial performance and will amount to at least RUB2 billion (USD25.8 million) including the exercising of the call/put options.

Lukoil-Inform operates the telecoms infrastructure for oil and gas exploration, production, processing, marketing and distribution across all Lukoil’s branches in 53 regions of Russia. In line with the agreement, Lukoil will retain the existing contractual commitments for Lukoil-Inform over the next five years. Rostelecom says the deal will further solidify its B2B offerings through the formation of a competence centre for digital development in the oil and gas sector. This in turn will open up further opportunities to promote Rostelecom’s comprehensive digital services across Lukoil’s wider corporate footprint. Anna Shumeiko, Senior Vice-President at Rostelecom, declared: ‘The wider synergy effects of this fusion will yield new opportunities for collaboration with the largest oil and gas major, including in the area of IoT technologies.’

Russia, Rostelecom