Oi, BrT to keep the status quo pending change to telecoms law

29 May 2008

Brazilian telecoms group has informed the country’s antitrust body Cade there is no reason to object to its acquisition of rival operator Brasil Telecom (BrT) because it plans to keep the two companies as separate entities pending an amendment in the telecoms law allowing it to merge them. Under current rules fixed line carriers operating in different regions of the country are not allowed to merge. BNamericas says that as part of standard protocols in Brazil, it is usual for Cade to ask the companies involved in a merger to sign a formal agreement committing to carry on separate operations until the acquisition is officially approved. ‘The deal will not generate any type of financial concentration until the change in the regulatory framework by Anatel. There will only be antitrust concerns after Anatel’s analysis, said the report Oi sent to Cade, according to local newspaper Valor Economico.

Brazil, Brasil Telecom (BrT), Oi