Megafon gets green light for potential Scartel deal

MOSCOW, July 25 (Reuters) - Megafon, Russia's No.2 mobile phone company, has obtained clearance from thecountry's competition watchdog for a potential acquisition ofrival Scartel, the regulator said on Thursday.

The Federal Anti-monopoly Service said in a statement on itswebsite it granted MegaFon's request to allow it to buy 100percent of Scartel's parent Maxiten Co Limited with conditionsaimed at preserving competition in the mobile broadband market.

Scartel is majority-owned by Megafon's main shareholderbillionaire Alisher Usmanov.

Megafon CEO Ivan Tavrin in June confirmed reports thatMegafon was in talks to buy Scartel, with which it already has apartnership, saying it was seeking the benefits of owning itsnetwork and spectrum.

He also said at the time that Usmanov would sell Scartel "atcost" if Megafon agreed a deal.

On Thursday, Megafon confirmed that it was considering apotential deal but said there was no certainty as to whether the transaction will proceed or when.

Megafon was one of four companies to win a 4G mobile licencein 2012 and is currently building its own network. Itspartnership with Scartel, which already operates a 4G network,had allowed Megafon to start offering fast wireless internetservices earlier than its peers MTS, Vimpelcom and Rostelecom.