Third application for AM, Telefonica deal under review

8 Nov 2019

El Salvador’s Superintendency of Competition (Superintendencia de Competencia, SC) says it has accepted a third application seeking approval for the sale of Telefonica’s local mobile unit Movistar to Mexican group America Movil (AM). The antitrust body will now carry out a technical, economic and legal analysis of the proposed transaction within 90 days, in order to evaluate the possible effects on competition in the market.

As previously reported by CommsUpdate, in January 2019 Spanish telecoms giant Telefonica agreed to sell its businesses in Guatemala and El Salvador to AM for USD333 million and USD315 million, respectively. The closing of the sale of Telefonica Guatemala took place that same month, but the Salvadoran deal was rejected as inadmissible in May. A second rejection occurred in August after AM failed to supply certain background information relating to the transaction, leading the Mexican company to submit a third request on 19 September, which was accepted by the SC earlier this month.

El Salvador, America Movil (AM), CTE Telecom Personal (Claro), Telefonica, Telefonica Moviles El Salvador (Movistar)