Oi and BrT can merge if they stay Brazilian

24 Aug 2007

Brazil’s federal government will support the merger between the country’s first and third largest fixed line operators Oi and Brasil Telecom (BrT) providing the new company remains in Brazilian hands, reports BNamericas, quoting the country’s chief of staff Dilma Rousseff from an article in newspaper Valor Economico. President Luiz Inacio Lula da Silva has expressly said his government wants the capital of both Brazilian operators to remain in the hands of a national company rather than a foreign investor, according to Rousseff. Lula would need to approve changes in Brazil’s telecoms legislation in order to permit a merger of Oi and BrT as two competing national concession contract holders are not permitted to merge under current legislation.

Brazil, Brasil Telecom (BrT), Oi