French billionaire Xavier Niel, who controls Ukraine’s third-largest mobile operator, lifecell, has become the largest shareholder in UK telecommunications company Vodafone Group. Through his investment vehicle Vega, Niel acquired a 16.2% stake in the operator from UAE-based telecommunications group e& for approximately £4.4 billion, or around $5.9 billion, strengthening his position in the European telecommunications market.
Investment company Vega announced the transaction on 10 July. Following completion of all required regulatory procedures, e& will fully exit Vodafone Group’s share capital and leave the company’s board of directors.
Commenting on the acquisition, Xavier Niel said that following its restructuring, Vodafone had become a more streamlined and focused company with significant potential for further growth. In his view, the operator has opportunities to unlock the value of its European and African assets, making the investment attractive from a long-term perspective.
The acquisition of a major stake in Vodafone represents another step in Niel’s strategy to expand his presence in the European telecommunications market. In recent years, the entrepreneur has actively invested in telecom operators and digital infrastructure.
The transaction also has additional significance for the Ukrainian market, as Xavier Niel is already one of the largest foreign investors in the country’s telecommunications sector. Through investment company NJJ Capital, he acquired mobile operator lifecell, as well as fixed-line internet and pay-TV provider Datagroup-Volia, combining them into a single group.
The acquisition of the Ukrainian telecommunications assets became the largest foreign investment in Ukraine’s economy since the start of the full-scale war. Forbes Ukraine estimated the transaction value at more than $650 million.
Ukraine’s mobile communications market remains one of the most competitive in the region. Vodafone Ukraine ranks second and has been wholly owned by Azerbaijani investment holding company Neqsol Holding since 2019. As of June 2025, the operator controlled 32.4% of the mobile market. The company recently also secured €30 million, or approximately $34 million, in export credit financing to purchase telecommunications equipment and services from Finnish company Nokia.
Kyivstar remains the market leader in Ukraine. In August 2025, the company became the first Ukrainian business whose shares began trading on the US Nasdaq stock exchange, marking a significant milestone for the country’s corporate sector.
As of June 2025, lifecell ranked third among Ukraine’s mobile operators, with a market share of 20.5%. Amid the consolidation of telecommunications assets and continued investment by international players, Ukraine’s communications market remains one of the most attractive segments for strategic investors despite ongoing wartime risks.
