Norwegian operator group Telenor has agreed to acquire Bulgarian mobile operator Globul from Greek operator group OTE. Telenor will pay €717m for the business as it looks to expand its presence in Central and Eastern Europe.

Globul is Bulgaria’s second largest mobile operator in terms of customer numbers with its 4.5 million subscribers as of December 2012, surpassed only by rival Mobitel’s 5.5 million subscribers, according to Informa’s WCIS.

Jon Fredrik Baksaas, Telenor Group president and CEO, said he believes that Telenor, with its scale and experience, will be able to create value in the Bulgarian market by combining it with Globul’s market knowledge.

Telenor Group already has operations in Central and Eastern Europe, in Hungary, Serbia and Montenegro. The operator said its entrance into the Bulgarian market increases the potential for cross-border co-operation and increased efficiency.

“We also see a potential in expansion of mobile data and internet-based services in the market,” added Kjell-Morten Johnsen, executive VP and head of Europe.

The acquisition also covers telecom retailer Germanos Bulgaria, which is operationally integrated with Globul.