Miguel de Godoy, the president of Argentina’s National Entity for Communications (Ente Nacional de Comunicaciones, ENACOM), has informed local website iProfesional.com that the pending merger between Telecom Argentina and Cablevision is unlikely to receive regulatory approval until 2018. Alongside ENACOM, the merger is being reviewed by the National Commission for Defence of Competition (Comision Nacional de Defensa de la Competencia, CNDC), and the two agencies are believed to have flagged up a number of ‘drawbacks’ thus far.
As previously reported by TeleGeography’s CommsUpdate, the merger was announced to the Argentine Securities Commission and the Buenos Aires Stock Exchange on 30 June 2017. The key driving force behind the deal is investment firm Grupo Fintech, which currently holds a 40% stake in Cablevision and also owns 100% of Sofora Telecomunicaciones, which in turn holds a 55.6% economic interest in Telecom Argentina.
TeleGeography notes that the combination of Cablevision (30.9% market share) and Telecom (23.6%) would combine two of the country’s three largest broadband players, creating an enlarged entity with a 54.5% share of the sector, comfortably eclipsing rival operators Telefonica de Argentina (24.0%) and Claro Argentina (8.8%).