Mexico: AT&T pumps $2.5B into America Movil rival

AT&T announced late last week that it reached an agreement to acquire Mexico wireless operator Iusacell I a $2.5 billion deal.

Reports say the US carrier’s investment in Latin America is poised to strengthen Iusacell’s position against its main rival and dominant wireless operator, America Movil.

AT&T will acquire the assets from their current owner, billionaire Ricardo Salinas, after he finalizes his own deal to acquire 50 percent of Iusacell from Grupo Televsa. The $2.5 billion purchase price includes $800 million in debt, reports say.

Mexico recently launched legislative overhauls aimed at boosting competition in its telecommunications industry, dominated largely by America Movil owner Carlos Sims. AT&T has already impacted the Mexican telco market with its plans to acquire DirecTV, which operates satellite services throughout Latin America.

In its announcement, AT&T called its purchase of Iusacell a “direct result of the reforms put in place by President Pena Nieto to encourage more competition and more investment in Mexico.”

Full content: Bloomberg

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