Watchdog approves Telefonica’s purchase of 10% of Telecom Italia

30 Apr 2010

The Brazilian antitrust regulator, the Administrative Council of Economic Defence (CADE) has finally given its approval to Telefonica’s acquisition of a 10% stake in Telecom Italia, Dow Jones reports. The late approval comes after years of observation of their local mobile units Vivo and TIM Brasil, which have been proven to be operating independently. The Brazilian telecoms regulator Anatel granted conditional approval to the Telefonica-Telecom Italia deal in 2007.

In 2007 Telefonica acquired a 42.3% stake in Telco SPA, an investment consortium that controls 24.5% in Telecom Italia, which at the same time has 81.3% of TIM Brasil. This share, which gave Telefonica an indirect 10% stake in Telecom Italia, has been a source of problems in both Argentina and Brazil where Telecom Italia operates though its subsidiaries, Telecom Argentina and TIM Brasil, respectively.

Italy, Telecom Italia (TIM), Telefonica