AM will amalgamate Brazilian operations, director says

30 Apr 2013

A director of Mexican billionaire Carlos Slim’s America Movil (AM) group, Daniel Hajj, has confirmed that the holding company will consolidate its fixed and mobile telecoms and cable TV operations in Brazil, NextTV Latam Daily news reports. Earlier this month TeleGeography’s CommsUpdate reported that AM was looking to amalgamate its fixed line business Embratel Participacoes (Brazil’s third largest telco behind Oi SA and Telefonica Brazil [Vivo]), Claro-branded mobile unit Telecom Americas (the number three player in the wireless market) and cable television unit Net Servicos de Comunicacao SA (the country’s leading pay-TV operator by users), in a bid to reduce overall operational costs. At the time, the three AM units confirmed that they were indeed evaluating options for a structural merger.

Mr Hajj says that the merger of the three units will take place, although the integration process will take between 18 months and two years to complete. According to the AM official, moves are currently underway to streamline and consolidate the group’s human resources, as well as its financing departments and other ‘technical aspects’ of the business. In a press conference held in the wake of the presentation of AM’s quarterly financial results, Hajj also dismissed speculation that the Mexican firm has been in talks with Brazilian media holding group Globo about the purchase of its free-to-air TV networks in the region, although he did not rule out an alliance between the pair.

Brazil, America Movil (AM), Claro Brasil (incl. Embratel & NET Servicos)