Telefónica and BellSouth to merge operations

19 Mar 2004

Telefónica Móviles and BellSouth’s plans to merge their Argentinian cellular units Unifón and Movicom BellSouth have been approved by the regulator, which claims that the deal would not harm the development of the sector. The two companies first announced the plans last week, as part of Telefónica’s USD5.85 billion purchase of all BellSouth’s Latin American operations. Now they have gained regulatory approval for the deal to go ahead, they hope to start negotiations immediately. The merger will result in a three-way competitive scenario in Argentina’s mobile market, between Telefónica Móviles, Telecom Personal and CTI Móvil.