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Claro aims to complete three-way Brazilian merger in December

17 Oct 2014

Mexican telecoms giant America Movil (AM) has revealed that it aims to conclude the merger of its three Brazilian operations in early December, Reuters reports, quoting Carlos Zenteno, the chief executive of wireless operator Claro Brasil. The process will see AM combine its wholly-owned Claro unit with its 95.8%-owned wireline business Embratel and its 92.5%-owned cable broadband unit Net Servicos de Comunicacao.

According to TeleGeography’s GlobalComms Database, in July 2014 telecoms regulator Agencia Nacional de Telecomunicacoes (Anatel) approved the amalgamation of the three companies on the condition that Claro register as a publicly held company with the Securities and Exchange Commission (CVM). Claro will absorb the two fixed line businesses, but will have to open up to other investors under Brazilian telecoms regulations that stipulate that concession holders or their controlling companies must have an open capital structure.

Brazil, Claro Brasil (incl. Embratel), Net Servicos

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