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

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.

Tuesday, October 29, 2019

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.

The official statement noted that the companies were warned "... 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 Superintendency acts in accordance with the Competition Law, which establishes the requirements for any request for authorization of economic concentration ...".

You may be interested in "Cell Phones: $1.2 Billion in Business in 2018" reviews that "... The Superintendent of Competition, Gerardo Henríquez, confirmed that América Móvil, owner of the Claro brand, submitted a third application to acquire the operations of Telefónica El Salvador. The telephone operator submitted the third request to the Superintendency on September 19, after the institution decided on August 26 inadmissible the second request for lack of documentation required to authorize the concentration."

The article adds that "... On September 19 (the request) came in, a prevention was made to clarify certain aspects that had been presented along with the documents and is in analysis of that information they have submitted,' said Henríquez."

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More on this topic

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.