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Brazil: Transformative wireless industry gets latest change

 |  January 14, 2014

Brazil’s antitrust authority CADE announced its approval of the proposed merger between Grupo Oi and Portugal Telecom without concessions, a deal that further morphs the changing landscape of the nation’s wireless market.

The companies first announced plans last October to combine into a new operator that plans to see about $19 billion in yearly revenue, reports say. The merged entity will be known as CorpCo and will reportedly serve as a lifeline to Portugal Telecom, which has struggled to maintain profits in recent years.

The deal will also emerge into new competition against heavyweights Telefonica, Telecom Italia’s TIM, and America Movil.

Brazil’s wireless industry is seeing heavy shakeups as of late as a buyout of TIM is up for grabs as Spain’s Telefonica may be forced to make big divestitures in Brazil.

Full Content: Reuters

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