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Mexico: AT&T decides it doesn’t need America Movil

By  |  November 13, 2014

Days after reports emerged that AT&T is looking to invest in Mexican wireless operator Iusacell, analysts say America Movil’s plans to partner with the US carrier will likely be thwarted.

AT&T said earlier this month that it reached an agreement to purchase Iusacell for $2.5 billion. The deal will boost Iusacell, the nation’s third-place wireless company, into a stronger position against market leader America Movil, which was declared dominant by competition authorities with a 70 percent share of the mobile market.

That declaration has lead America Movil owner Carlos Slim to plan divestitures. Last July, reports say Slim warned it would take time to offload assets. Soon after, AT&T rival Verizon said it had no interest in Mexican investments, while AT&T itself downplayed interest in a deal.

Other contenders to acquire America Movil shares include Vodafone and Japan-based Softbank, reports say.

Following AT&T’s announcement about Iusacell, the company said the move allows the company “a nice scalable growth platform without the America Movil assets.”

Full content: Reuters

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