A PYMNTS Company

Brazil: CADE may oversee Telefonica’s plans to exit Telecom Italia

By  |  September 3, 2014

Brazil antitrust authority CADE may review Spanish telco Telefonica’s plans to exit its ownership of Telecom Italia, which has caused significant controversy in the Brazilian market, say reports.

CADE said Wednesday that depending on how Telefonica proposes its plans, the agency may oversee the transaction.

Telefonica is set to exit Telecom Italia and simultaneously acquire smaller rival GVT. CADE first ordered Telefonica to end its ownership of Telecom Italia last December due to Telefonica’s conflicting dual presence in Brazil’s wireless market; Telefonica owns top carrier Vivo as well as holds a stake in TIM Brasil through its ownership in Telecom Italia.

Now, Teleofnica will exit the Italian telco and has offered Vivendi, based in France, an 8.3 percent voting stake in Telecom Italia and $9.8 billion in exchange for GVT.

Full content: Reuters

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.