Brazil OKs Oi’s BrT purchase

16 Jun 2008

On Thursday 12th June the Brazilian telecoms regulator Anatel approved changes to the country’s telecoms laws to allow a single telecoms group to hold two separate operating licences, effectively paving the way for Oi Participacoes (formerly Telemar) to complete its planned BRL5.86 billion (USD3.58 billion) takeover of rival telco Brasil Telecom (BrT). The takeover is now awaiting final government approval. In order to guarantee that competition is not affected by the merger, Anatel has also ruled that companies holding concessions in more than one operating region must provide services on a national basis. It hopes this condition will stop telcos from cherry-picking lucrative densely populated areas at the expense of less attractive rural markets.

Brazil, Brasil Telecom (BrT), Oi