FNE approves KKR purchase of a 60% stake in Movistar fibre unit

21 Jun 2021

Chilean antitrust watchdog the National Economic Prosecutor’s Office (Fiscalia Nacional Economica, FNE) has greenlit the acquisition of a 60% stake in Movistar Chile’s fibre-optic infrastructure subsidiary InfraCo by KKR Alameda Aggregator – part of international investment firm KKR, Diario Financiero reports. Under the planned deal, KKR Alameda would will acquire a 60% stake in a holding company – InfraCo Holdco – which in turn holds 100% of InfraCo. According to the FNE’s report, InfraCo will build, operate and sell infrastructure and provide wholesale services. The regulator found that the sale would not lead to a concentration of market power as KKR does not have an existing presence in any of the affected markets. Further, the FNE noted that without the transaction Movistar would continue to hold exclusive control over the network, whilst the sale would promote the use of the infrastructure by other players, expanding the capabilities of existing providers and facilitating the entry of new providers into the broadband market. The regulator went on: ‘In this way, the [transaction] would contribute to the opening of certain geographical areas in favour of other actors present in Chile, thus enhancing the conditions of competition in different local markets.’ Finally, the regulator noted that none of the industry stakeholders consulted on the matter raised any potential concerns.

Chile, Kohlberg Kravis Roberts & Co (KKR), Telefonica Moviles Chile (Movistar)