Brazil: Telefonica to shake up assets following broadband buyout

Spain’s largest wireless operator Telefonica is reportedly planning a shakeup of its global operations following the acquisition of Brazil broadband operator GVT.

Reports say Telefonica will divest its assets in Telecom Italia after the buyout is complete. Telefonica beat out Telecom Italia to acquire GVT from Vivendi last week, causing significant tensions between the Spanish and Italian firms, say reports.

Telecom Italia declined to comment on the matter.

According to reports, Telefonica’s plans do not come as a surprise as the company has slowly been backing away from its ownership in Telecom Italia, which it owns through holding company Telco. The ownership has caused significant conflicts for the Spanish company, especially in Brazil, where it has faced regulatory scrutiny by antitrust watchdog CADE for Telefonica’s presence in the South American nation through direct and indirect ownerships.

Telefonica owns Brazil telco Vivo, and, through its stake in Telecom Italia, also owns an indirect share in Vivo rival TIM. Telefonica has been ordered by CADE to resolve that dual presence.

Full content: Reuters

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