CFC says yes to AM/Telmex/Telint and Televisa/Nextel deals

12 Feb 2010

Mexico’s antitrust regulator the Federal Competition Commission (CFC) has given the green light to the planned merger of America Movil (AM), Telmex and Telmex international (Telint). AM will buy 71.5% of Telmex and 100% of Telint after the watchdog ruled that the consolidation will not alter the market structure nor competition conditions in Mexico, since the companies belong to the same economic group to begin with. AM says it will absorb Telint and then delist it, but that Telmex will continue as a separate listed company.

In separate but related news, the CFC has also given approval for media conglomerate Grupo Televisa to take a 30% to 40% stake in mobile phone operator Nextel de Mexico. The regulator stated that it had allowed the transaction as it involves a partnership of two companies focused on different markets, with minimal overlap. Televisa has so far declined to confirm publicly whether it is planning to acquire the stake.