El Salvador: Telefonica's Sale Cancelled

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.

Friday, September 4, 2020

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.

One of the conditions imposed by the SC to authorize the acquisition was that América Movil must waive the right to exploit 25 MHz of radio spectrum with national coverage in the 850 MHz band and 30 MHz of radio spectrum with national coverage in the 1900 MHz band, which are currently owned by Telefónica.

After analyzing the resolution of the SC, "... the Spanish Telefonica announced that it desists from selling its operations in El Salvador to America Movil, owner of the Claro brand, after the conditions imposed by the authorities to carry out the operation in process for more than a year."
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The article of Elmundo.sv adds that "...'Telefónica informs that, according to what was agreed with América Movil, both parties have terminated the agreement to purchase 99.3% of Telefónica Moviles El Salvador', indicated the telecom operator in a press release in which it assured that the decision was taken after a 'detailed analysis' of the resolution of the SC."

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More on this topic

El Salvador: Telefonica's Purchase Conditioned

August 2020

One of the conditions for authorizing the acquisition is that America Movil must relinquish the right to operate 25 MHz of radio spectrum with national coverage in the 850 MHz band and 30 MHz of radio spectrum with national coverage in the 1900 MHz band, which currently belong to Telefonica.

According to the technical, legal and economic analysis carried out, it was warned that the acquisition would result in limitations to competition in the markets for mobile and fixed telephony and business connectivity services. Therefore, the Board of Directors of the Superintendence of Competition (CDSC) decided to impose a set of conditions to repair the damages, which include enforcement measures prior to the closing of the transaction (ex ante) and a series of subsequent obligations (ex post) in order to counteract such limitations, informed the Superintendence of Competition (SC).

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.

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.

El Salvador: Claro Cancels Purchase of Digicel

October 2012

After the competition regulator imposed the release of part of the spectrum leased by Claro as a condition to the merger between the two companies, America Movil has announced its withdrawal from the move.

In March last year, America Movil announced an agreement to acquire a 100% stake of Digicel El Salvador, for an undisclosed amount.

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