Mexican telecom operator America Movil SAB de CV and Chilean Empresa Nacional de Telecomunicaciones SA (Entel Chile SA) intend to submit a joint application for the acquisition of the Chilean division Telefónica, S. A. This is reported by foreign media.
America Movil, which is present in Chile through its subsidiary ClaroVTR, is interested in Telefonica Chile's mobile business, while Entel is interested in the fixed—line segment. If completed, the deal will become one of the stages of consolidation of the Chilean telecommunications market amid fierce competition. Telefonica is one of four companies, including WOM and ClaroVTR, that are vying for market dominance despite losses.
The joint proposal is accompanied by rumors that the Chilean regulator may block some proposals for antitrust reasons. Movistar, the mobile operator of Telefonica, occupies 23.2% of the market, Entel - 33.2%, and Claro — 20.9%.
The proposed transaction is in line with Telefonica's strategy to sell non-core assets as part of a restructuring initiated in 2024, including subsidiaries in Peru, Colombia and Argentina. Telefonica's management plans to present a plan for further operations on November 4 and considers Germany, the UK, Spain and Brazil as the main markets for the company.
Entel Chile is a Chilean telecommunications and information technology company. The headquarters is located in Las Condes (Chile).
América Móvil is a Mexican telecommunications company with headquarters in Mexico City and offices in Latin America, Austria and Eastern Europe.
Telefónica, S. A. is a Spanish multinational telecommunications company. The headquarters is located in Madrid (Spain). Telefónica is one of the largest telephone operators and mobile communication providers in the world.
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