Liberty Latin America (LLA) has announced that its 49%-owned Cable & Wireless Panama (CWP) subsidiary has agreed to acquire Claro Panama from America Movil (AM) in an all-cash transaction valued at USD200 million. For the year ended 31 December 2020 Claro Panama generated USD157 million of revenue and as of 30 June 2021 the business served 760,000 mobile subscriptions. Completion of the transaction is subject to certain customary closing conditions, including regulatory approvals, and is expected to close in the first half of 2022.
Balan Nair, LLA President and CEO, commented: ‘We are delighted to further increase our commitment to Panama through today’s announced acquisition of Claro Panama. The integrated business will operate over a network with extensive coverage and invest to deliver innovative mobile products and services for Panamanian consumers and B2B customers, including via leading technologies such as 5G.’
TeleGeography notes that the Panamanian government has sought to reduce the wireless market from four players to three since 2017, as it seeks to make better use of the country’s spectrum resources. Law No. 479 – which was tabled in April 2017 – ordered the country’s cellcos to find a solution to the four-into-three quandary, although it is unclear if this week’s deal is a result of government pressure or market conditions. The other mobile players in Panama are Tigo and Digicel.