Digitel takeover rejected by regulator

6 May 2005

Venezuelan regulator Comisión Nacional de Telecomunicaciones (Conatel) has rejected the planned takeover of the country’s third largest cellco Digitel by PTO CANTV over fears for competition in the market. CANTV announced in November that it had agreed a USD450 million deal to purchase Digitel, wholly owned by Telecom Italia Mobile (TIM), and merge it with its own wireless unit Movilnet. The merged company would have gained control of around half the market and effectively reduced the sector to a two-way battle between itself and Telefónica Móviles subsidiary Telcel. TIM chief Marco De Benedetti says his company still intends to dispose of its Venezuelan assets.

Venezuela, CANTV, Digitel, Movilnet