Israeli market leader Cellcom is mulling over an acquisition of the country’s smallest competitor, Golan Telecom.
Cellcom has stated that it is “review[ing] the possible purchase of holdings in, or assets of, Golan Telecom…following an invitation by Bank Rothschild, representing Golan Telecom’s shareholders”. However, it added that “there is no assurance that the company will make an offer to purchase Golan Telecom nor as to the execution of such a sale.”
Golan has reportedly enlisted an investment bank to “prepare and examine options that could result in a sale, acquisition or merger so long as they leave Golan Telecom independent”, noting that “shareholders are alert to a potential consolidation similar to what is occurring in other markets around the world”.
Cellcom has around 29% of the Israeli market compared to Golan’s 7%. The smaller firm has 850,000 customers.
