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El Salvador OKs America Movil’s Planned $315M Buy, With Conditions

By  |  August 19, 2020

El Salvador’s antitrust authority announced on Tuesday, August 18, that it will allow an expanded market share for telecommunications firm Claro, a unit of Mexico’s America Movil, on guarantees that it will abide by competition and consumer protection safeguards. 

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    America Movil, controlled by the family of Mexican tycoon Carlos Slim, aims to acquire for US$315 million two units of Spain’s Telefonica that operate in the Central American country which could generate “limits on competition,” El Salvador’s Competition Superintendent (SC) said in a statement. 

    The two Telefonica units are Telefonica Moviles El Salvador and Telefonica Multiservicios, both of which operate under the Movistar brand and belong to Telefonica Centroamerica Inversiones. 

    “If Claro complies with the conditions, it will be able to execute the purchase,” according to a statement from the antitrust agency, which added that it seeks to ensure market competition. 

    In order to complete the acquisitions, Claro must rule out the future use of the portion of the spectrum currently used by Movistar, which must be certified by authorities.

    Full Content: Reuters

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