French billionaire Xavier Niel's investment company, NJJ Capital, is poised to make one of the largest acquisitions in Ukraine's history, with plans to acquire two major telecom businesses in the war-torn country.

In a joint press release issued on April 8, NJJ Capital announced its regulatory approval to acquire Datagroup-Volia, one of Ukraine's largest fixed telecom and pay-TV providers. Following this approval, the company is set to acquire Lifecell, Ukraine's third-largest mobile operator, owned by Turkey's largest telecommunications company, Turkcell.

Reports first emerged in January that Turkcell would sell its Ukraine units to NJJ Capital for an estimated $525mn. Subsequently, NJJ expressed interest in acquiring Datagroup-Volia, formed after Datagroup's acquisition of Volia Group in 2021.

Upon completion of the acquisitions, NJJ Capital intends to merge Datagroup-Volia with Lifecell to create a combined entity. This landmark transaction is expected to surpass $1bn in value, making it one of the largest acquisitions in Ukraine since its independence.

The acquisitions are set to inject crucial investment into Ukraine's telecommunications sector, which has suffered from disruptions due to the war.

Commenting on the deal, Xavier Niel stated, "We are confident that our landmark transaction will serve as a signal to others that the time to invest in Ukraine is now, to support the rebuilding of the country and realise its potential."

NJJ Capital's capital expenditures will focus on expanding fixed and mobile infrastructure, as well as building out 5G networks across Ukraine.

Upon completion of the acquisitions, the combined platform is expected to employ around 5,000 people and serve approximately 11mn customers. Datagroup-Volia CEO Mykhaylo Shelemba will continue to lead the merged entity, while Horizon Capital will retain a minority stake in the company.

With Ukraine's antitrust regulator currently reviewing the Lifecell acquisition, the deal is on track to close pending regulatory approval, signalling a new chapter in Ukraine's telecommunications landscape.