The Superintendence of Telecommunications, as Sectorial Competition Authority, approved the purchase by Cabletica of 100% of the operations of Telefonica de Costa Rica, which offers telephony and mobile Internet services nationwide.
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 announced that it had reached an agreement with Liberty Latin America for the sale of the entire capital stock of its operation in Costa Rica, a transaction totaling $500 million.
Millicom announced that it exercised its right to terminate the Share Purchase Agreement for the acquisition of Telefonica's operating subsidiary in the Central American country.
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.
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 Guatemala, the telephone company Tuenti reported that it will now be part of América Móvil, owner of the Claro brand, following the sale of Telefonica's shares in early 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."
The Superintendence of Telecommunications authorized the economic concentration requested for Millicom to acquire the shares of Telefonica de Costa Rica TC S.A.
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).
The company reported that it has transferred the entire share capital of Telefónica Celular de Nicaragua, S.A. to Millicom International Cellular, S.A., for a price of $437 million.
On May 16, Telefónica S.A. reported that "Following the communication published on February 20, 2019 (with entry registration number 274959), Telefónica announces that once the relevant regulatory approvals have been obtained, Telefónica Centroamérica Inversiones, S.L.., a company owned, directly and indirectly, 60% by Telefónica and 40% by Corporación Multi Inversiones, has today transferred the entire share capital of Telefónica Celular de Nicaragua, S.A. to Millicom International Cellular, S.A. for a price of 437 million dollars, approximately 390 million euros at the current exchange rate". Consult Telefónica's full press release.
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.
The company reported that it signed an agreement with Millicom S.A. for the sale of all shares of Telefonica Costa Rica, Nicaragua and Panama, closing the transaction at $1.65 billion.
After the company reported in late January 2019 that for $648 million it had agreed to sell to America Móvil all the shares of Telefonica Guatemala and 99.3% of Telefonica El Salvador, it now announced that it had completed the sale process of the entire operation in Central America.
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.
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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