Carlos Slim strengthens its activity in Central America with the purchase of Telefonica

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The Mexican telecommunications giant América Móvil reported on Thursday that he had acquired the operations of the Spanish group Telefónica in Guatemala and El Salvador for a total of 648 million dollars. In a statement, the telecommunications giant, owned by Mexican billionaire Carlos Slim, informs that it has acquired 100% of the shares of Telefónica Móviles Guatemala and has stipulated a contract to acquire 99.3% of Telefónica Móviles El Salvador, # 39; last transaction is subject to the authorization of that country's regulator.

The subsidiary of Carlos Slim explained with a statement that the price paid for the purchase of Telefónica Guatemala was 333 million US dollars; while the amount agreed for the purchase of Telefónica El Salvador is $ 315 million.

América Móvil said that although the purchase of Telefónica Guatemala took place this Thursday, that of the operation in El Salvador is subject to the conditions that are common to this type of purchase, including regulatory authorizations.

The acquired companies provide fixed and mobile telecommunications services, including voice, data and pay-TV in El Salvador and Guatemala, respectively.

"With this transaction, América Móvil (AMX) consolidates its position as one of the leading telecommunications service providers in Central America, strengthens its position in both countries to continue providing integrated telecommunications services and is positioned to provide new generation, including 5G ", the company highlighted in the report.

Telefónica, the main rival of Latin America in Latin America, has long planned this movement and also its exit from the Mexican market to quickly reduce its debt. It remains to be seen whether Slim will be a bidder for the activities of the Spanish group in Mexico, since in recent years América Móvil has been the subject of great pressure from the Federal Telecommunications Institute (IFT) to expand competition in the telecommunications sector. In 2014, with the entry into force of the sector reform, América Móvil was declared a preponderant economic agent.

With the sale of its assets, the Spanish company could focus on its larger operations and reduce the debt, since at the end of last September it had a debt of approximately US $ 48.900 million.

"This operation is framed in the portfolio management policy of assets of the Telefónica group, based on a strategy of value creation, optimization of return on capital and strategic positioning ", said the Spanish multinational in a statement. integrates the objective of reducing debt and strengthening the balance with the organic route, in a scenario of increasing cash generation, which allows us to maintain a sustainable and attractive remuneration for shareholders.

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