Authorization to Acquire Telefónica Requested

The request for authorization of economic concentration was presented, "consisting of the acquisition by América Móvil of control of the majority of Telefónica's capital stock in El Salvador."

Friday, March 8, 2019

At the end of January of this year it was reported that América Móvil bought 99.3% of Telefónica El Salvador, a transaction that reached close to $311 million.

From the Superintendence of Competition statement:

March 6, 2019. If admitted, the Superintendence shall perform a technical analysis on the possible effects of the transaction, as established in Article 34 of the Competition Law.

On March 5, 2019, the Superintendence of Competition (SC) received a request for authorization of economic concentration, consisting of the acquisition by América Móvil of control of the majority of Telefónica's share capital in El Salvador.

Upon receipt of the request, the SC will review compliance with the requirements established in the Competition Act (LC) and its regulations, as well as other applicable laws, to determine whether the transaction should be prevented, admitted for processing or declared inadmissible.

About the technical analysis
If admitted, the Superintendence shall conduct a technical analysis of the possible effects of the transaction, as provided in Article 34 of the LC, to assess whether it would produce a significant limitation of competition, in accordance with the criteria established in Articles 28 and 29 of the same law and in pursuit of economic efficiency and consumer welfare. The period for analysis following admission is 90 working days, in accordance with the applicable regulations in force for this application.

With the analysis of economic concentrations, the SC seeks to prevent any impact on the market, which could arise as a result of the transaction, in its role of promoting, protecting and ensuring competition.

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Telefonica Purchase: New Application Accepted

November 2019

With the admission of a new procedure for the authorization of economic concentration, presented by América Movil and Telefonica de El Salvador, begins "the technical, economic and legal analysis that will determine whether or not the transaction will cause a significant limitation of competition."

Both companies submitted this third application for authorization on 19 September this year.

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."

Acquisition of Telephone Company Declared Unacceptable

May 2019

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."

"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).

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.