General Superintendence approves Oi Movel sale; decision passes to CADE

4 Nov 2021

The Brazilian government has announced that the General Superintendence (Superintendencia-Geral, SG) has approved the proposed sale of Oi Movel, while recommending ‘the adoption of remedies that mitigate competitive risks’. Measures will include spectrum rental agreements in municipalities with less than 100,000 inhabitants, roaming agreements for smaller players and increased wholesale access to MVNOs. As such, the SG says it has negotiated an Agreement on Control of Concentrations (Acordo em Controle de Concentracoes, ACC) with the acquisitive parties. The decision has now passed to the Administrative Council for Economic Defence (Conselho Administrativo de Defesa Economica, CADE) for review.

According to TeleGeography’s GlobalComms Database, Oi’s mobile unit was sold at auction on 14 December 2020, generating a final bid of BRL16.5 billion (USD3.25 billion). The winning bidder was a consortium comprising Oi’s domestic rivals, Telefonica Brasil (Vivo), TIM Brasil and Claro Brasil. The Judicial Reorganisation Court duly ratified the offer and Oi went on to execute the ‘Agreement for the Purchase and Sale of Shares and Other Covenants’ on 28 January 2021.

Brazil, Claro Brasil (incl. Embratel & NET Servicos), Oi, Telefonica Brasil (Vivo), TIM Brasil