Spain’s Telefonica has reportedly approached potential acquisition targets and partners in Mexico, Bloomberg claims, citing three people familiar with the matter. With Telefonica looking to challenge the dominance of American Movil (AM), which is controlled by local billionaire Carlos Slim, it is understood that the Spanish group have held discussions with companies including mobile operator Grupo Iusacell, pay-TV giant Grupo Televisa and cableco Megacable. It has also been suggested that Telefonica is working with Banco Santander and Banco Bilbao Vizcaya Argentaria with regard to any potential mergers or acquisitions in Mexico.
As noted in TeleGeography’s GlobalComms Database, Movistar Mexico was the country’s second-largest cellco by subscribers at the end of June 2013, with 19.086 million users, corresponding to 18.4% of the market. By comparison, at that date market leader Telcel, now wholly owned by AM, reported 71.965 million mobile subscribers, giving it almost 70% of the sector.