CADE approves Ligga takeover of Nova Fibra

14 Jun 2022

Brazil’s Administrative Council for Economic Defence (Conselho Administrativo de Defesa Economica, CADE) has approved the proposed takeover of regional ISP Nova Fibra by Ligga Telecom (formerly Copel Telecom). According to Tele.Sintese, the General Superintendence of CADE has rubber-stamped the tie-up, despite certain geographical overlaps between the two companies’ operational footprints. The watchdog indicated that the municipalities in question all demonstrate ‘the existence of effective rivalry’, citing evidence of market share position changes and successful new market entrants over the last five years.

As previously reported by CommsUpdate, the then-Copel Telecom agreed to acquire Nova Fibra in a deal valued at BRL500 million (USD94.7 million) in February 2022. The deal was struck with Nova’s owner, Grupo ABL, which is backed by Agnaldo Lopes. Nova Fibra is understood to have a presence in 30 towns and cities in Sao Paolo and Parana, and presides over a 7,000km fibre network. The smaller player serves around 90,000 retail subscriptions and 3,500 business clients.

TeleGeography notes that Copel Telecom was rebranded as Ligga Telecom in March this year to distance the divested ISP from its former owner, Parana-based state power company Companhia Paranaense de Energia (Copel).

Brazil, Ligga Telecom (formerly Copel Telecom)