Brazil’s Administrative Council for Economic Defence (Conselho Administrativo de Defesa Economica, CADE) has reportedly approved the proposed takeover of regional B2B player Vogel Telecom, by Algar Telecom. According to TeleTime, the approval was included in the Official Gazette (Diario Oficial da Uniao, DOU) on 28 June. CADE’s analysis established minimal network overlap, and the watchdog is quoted as saying ‘Vertical integration in the infrastructure market would not bring competitive risks.’
As previously reported by TeleGeography’s CommsUpdate, in May this year Algar Telecom agreed to acquire Vogel Telecom in a deal worth BRL600 million (USD114.5 million). The takeover, which will be carried out via Algar’s wholly owned Algar Solucoes unit, will involve the acquisition of shares representing at least 85.2% of Vogel (potentially rising to a 100% stake).
Vogel Telecom is present in 150 cities across 13 states and the Distrito Federal and presides over a fibre-optic network that spans 27,000km.