Acquisition of Telephone Company Declared Unacceptable

In El Salvador, the Superintendence of Competition reported that "it has declared inadmissible the request for economic concentration presented by América Móvil S.A.B. de C.V., on March 5 of this year."

Wednesday, May 22, 2019

"When a new application for authorization is submitted, the SC will continue this process on the basis of a technical, legal and economic analysis, under the principle of independence that the LC mandates and distinguishes its actions, with the sole objective of protecting and ensuring competition in the country," reported the Superintendence of Competition (SC).

See "Authorization to Acquire Telefónica Requested"

From the Superintendence of Competition statement:

With regard to this particular stage, it is based on articles 33 and 35 of the Competition Law, 25 and 26 of its Regulations and 71 and 72 of the Administrative Procedures Law.

San Salvador, May 21, 2019. The Superintendence of Competition of El Salvador (Superintendencia de Competencia de El Salvador, SC), in its role of promoting, protecting and guaranteeing competition in favor of economic efficiency and for the benefit of consumers, regarding the admission process for the purchase authorization application of Telefónica Móviles El Salvador S.A. de C.V. and Telefónica Multiservicios S.A. de C.V. by América Móvil S.A.B. de C.V., informs:

1. That once the terms established in the national legislation corresponding to the admission analysis stage have ended, this Superintendence has declared INADMISIBLE the request for economic concentration presented by América Móvil S.A.B. de C.V., last March 5 of the current year.

Read full statement (In Spanish).



More on this topic

El Salvador: Telefonica's Sale Cancelled

September 2020

As a result of the conditions imposed by the Superintendence of Competition to carry out the operation, América Movil and Telefónica decided to cancel the agreement to purchase 99.3% of Telefonica Moviles El Salvador.

According to the technical, legal and economic analysis carried out by the Superintendence of Competition SC, it was warned that the acquisition would produce limitations to competition in the markets of mobile and fixed telephony and business connectivity services.

Telefonica's Purchase: Is the Third Time the Winner?

October 2019

After rejecting the two previously filed applications, El Salvador's Superintendence of Competition confirmed that it had received a new request for América Móvil to complete the acquisition process of Telefónica.

In mid-September 2019 it was reported that the Superintendence of Competition of El Salvador declared inadmissible, for the second time, the request for authorization of economic concentration presented by América Móvil, arguing that the information in the file was not complete.

Telefonica's Purchase Declared Unacceptable Again

September 2019

The Superintendence of Competition of El Salvador once again declared "inadmissible the request for authorization of economic concentration presented by América Móvil, which would consist of the acquisition of the share capital necessary to control Telefónica's operations."

Once again, the purchase of the telephone company in El Salvador is declared inadmissible, since at the end of May, the authorities informed that they also declared "inadmissible the request for economic concentration presented by América Móvil S.A.B. de C.V., last March 5 of this year."

Telefónica Starts Selling Assets in the Region

January 2019

The company reported that it sold all the shares of Telefónica Guatemala and 99.3% of Telefónica El Salvador to América Móvil for $648 million.

The Spanish company stated that the closing of the sale of Telefónica Guatemala took place on January 24, however, the sale of Telefónica El Salvador is subject to the relevant regulatory conditions.