Anatel OKs Oi’s BrT acquisition

19 Dec 2008

Brazil’s telecoms regulator, the Agencia Nacional de Telecomunicacoes (Anatel), yesterday approved with conditions the takeover of communications group Brasil Telecom (BrT) by its domestic rival Oi Participacoes (Telemar). The BRL5.86 billion (USD2.48 billion) deal was first announced in April this year but was dependent on Brazil amending its telecoms laws and on Anatel’s regulatory clearance. The total value of the transaction may rise to BRL12.3 billion including offers to BrT’s minority shareholders.

Oi is looking to create a new super operator capable of taking on the likes of Telefonica and Mexico’s America Movil in its home market. The enlarged operation would control roughly 70% of the Brazilian fixed line market, 18.5% of the mobile sector and around 40% of the broadband internet user market. Last month Oi announced it would soon have enough funds in place to complete its takeover of BrT following its planned issuance of BRL2 billion in promissory notes. The issuance of 80 promissory notes priced at BRL25 million each was coordinated by Bradesco BBI, Itau BBA and Santander. Anatel’s proposed restrictions to the deal will be explained shortly.

Brazil, Brasil Telecom (BrT), Oi