Sutel approves Millicom’s Movistar takeover

3 Sep 2019

Costa Rica’s Superintendency of Telecommunications (Superintendencia de Telecomunicaciones, Sutel) has announced that it has approved the EUR503 million (USD552 million) takeover of Telefonica de Costa Rica (Movistar) by Millicom International Cellular (MIC). As per Sutel documentation, the acquisition will be carried out via Millicom’s local ISP unit, Millicom Cable Costa Rica (which trades as Tigo). The regulator’s Resolucion RCS-221-2019 assessed: ‘There is no evidence of the existence of potential anti-competitive effects derived from the acquisition of 100% of the capital stock of Telefonica CR by Millicom.’

When concluded, the deal will represent the final piece of Millicom’s Central American jigsaw, after the recent takeovers of Telefonica assets in Nicaragua and Panama. A triple takeover deal was inked in February this year, with Millicom agreeing to pay a combined enterprise value of USD1.65 billion for the three cellular businesses.