Telefónica Starts Selling Assets in the Region

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.

Friday, January 25, 2019

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.

Regarding the announcement of the purchase of Telefónica El Salvador, the Superintendence of Competition (SC) of that country informed that until January 25, 2019, it had not received any request for authorization from América Móvil for the purchase of Telefónica de El Salvador.

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The SC explains that "... its actions in relation to this case of economic concentration will be based on the mandates of El Salvador's Competition Law through a technical, legal and economic analysis, maintaining, as always, its technical and independent character, with the sole objective of protecting and guaranteeing competition in the country and based, specifically, on what is established in articles 31, 32, 33, 34 and 35 of the mentioned legislation."

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.

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.

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).