América Móvil linked with possible TIM Brasil bid

8 Nov 2006

Mexican telecoms group América Móvil (AM) is said to be one of two companies looking to acquire Brazil’s second largest mobile operator, TIM Participacoes, according to a report from Reuters citing an unnamed industry source. In is not known how much AM is prepared to offer for Telecom Italia’s Brazilian business, but if successful, the company, which is controlled by the entrepreneur Carlos Slim, would become the largest mobile player in the market, leapfrogging Telefónica-controlled Vivo in the process. Analysts note though that any such move would face significant regulatory hurdles. Acquiring TIM Brasil would give AM almost half of the local mobile market. Claro, AM’s existing Brazilian wireless arm, had 22.172 million subscribers at the end of September while TIM Brasil counted 24,084 million. Vivo meanwhile had 28.726 million at the same date, a market share of around 30%.