El Salvador agrees to review America Movil request to acquire Telefonica assets


El Salvador’s antitrust regulator Superintendencia de Competencia has finally agreed to admit America Movil’s request to acquire Telefonica’s operations in El Salvador at the third time of asking. America Movil filed a third application on 19 September after the regulator issued a decision on 26 August describing the deal as “inadmissible” and repeating a demand for more background information on the transaction, as required by the country’s competition law, a request that wasn’t heeded by America Movil following the first rejection in May. 

The watchdog will now take a maximum of 90 working days to review issues such as availability of specific products and services in the market, the number of competitors, their market share and their commercial strategies before deciding whether or not to accept the deal or apply conditions.

JustForex

Telefonica reached an agreement to sell its Guatemala and El Salvador assets to America Movil for a total of EUR 570 million back in January. The parties agreed that Telefonica El Salvador had an enterprise value of EUR 277 million and had initially expected the deal to close by September.

 

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