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Brazilian regulator okays Telxius acquisition by American Tower

The Superintendence-General (SG) of the Administrative Council for Economic Defense (Cade) has approved without restrictions the purchase of the towers of Telxius Torres (a subsidiary of Telefónica / Vivo) in Brazil by American Tower.

According to local media reports, Cade's decision was published in the Federal Official Gazette this Thursday, 29, after dispatch issued the previous day. The reports said that some competitors in the tower market wanted conditions to approve the deal.

Telefónica signed an agreement with American Tower in mid-January for the sale of the tower divisions in Europe and Latin America. The transaction, one of the most important in the history of the Spanish telecom company, allowed it to enter some 7,700 million euros at the closing.

It was configured in two parts: that of the assets of the Old Continent and those of Latin American territory. They both had different closings and schedules. The first has already come to an end in the regulatory journey.

Competitors of American Tower contested the transaction, but, according to the local media reports, Cade understood that, even though American Tower has more than 20% of the national market, there are not enough indications of concentration for anti-competitive actions.

Telxius Telecom is a company of Spanish group Telefonica, which has activities in Brazil in various sectors of telecommunications. Telefônica holds 50.1% of Telxius, which, according to the operator, will not be extinguished with the sale of the towers. The company will remain to manage about 100 thousand km of submarine cables belonging to the operator.



Source: https://www.developingtelecoms.com/telecom-business/telecom-regulation/11061-brazilian-regulator-okays-telxius-acquisition-by-american-tower.html

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