Telefonica's Purchase Declared Unacceptable Again

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."

Thursday, September 12, 2019

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."

See "Authorization to Acquire Telefónica Requested

From the Superintendence of Competition statement:

September 11, 2019. The SC 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 in El Salvador. The resolution of inadmissibility was issued by the Superintendent of Competition on Monday, August 26 and the economic agents involved were notified on Wednesday, August 28.

América Móvil filed this second request for authorization on Thursday, June 27, 2019. From that date, the SC began the evaluation of the documentation presented to assess the admissibility of the request or the need for more information from the companies involved to learn about the operation, all within the framework of what the Competition Law (LC) - articles 31 to 36 - and its Regulations - articles 18 to 32 - determine, as well as the provisions of the Law of Administrative Procedures (LPA).

In a detailed review of the extensive documentation submitted, on Monday, July 22, the SC notified América Móvil of a prevention measure, warning of the need to complete certain information necessary to know the substance of the proposed operation and required in accordance with the powers provided by law.  The Superintendence acts in accordance with the Competition Law, which establishes the requirements for all requests for authorization of economic concentration, specifically in article 33 and article 25 of its regulations; additionally, the LC provides the authority to request any other additional information that may be necessary to know about the transaction, on a case-by-case basis.



More on this topic

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).

Authorization to Acquire Telefónica Requested

March 2019

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."

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.

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.