América Móvil acquires Telefónica in Guatemala and El Salvador

The acquisition of Telefónica in Guatemala and El Salvador is for a total amount of both operations of 645 million dollars. Slim's company becomes a leader in Central America

Carlos Slim. Photo: Social media
Carlos Slim. Photo: Social media

The telecommunications company América Móvil, a firm owned by Carlos Slim, acquired Telefónica's businesses in Guatemala and El Salvador for a total amount of both operations, amounting to 645 million dollars (mdd).

"With this transaction, AMX consolidates its position as one of the leading providers of telecommunications services in Central America, strengthens its position in both countries to continue providing integrated telecommunications services and is positioned to provide new generation services, including 5G," he said. the company in a statement sent to the Mexican Stock Exchange (BMV).

The price paid for the acquisition of Telefónica Guatemala was 333 million dollars, while the price agreed for the purchase of 99.3% of Telefónica El Salvador is 315 million dollars.

The closing of the acquisition of Telefónica Guatemala has taken place today, but the closing of the acquisition of Telefónica El Salvador is subject to the conditions of the regulatory authorities.

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

Spanish telecoms group Telefónica said on Tuesday it was negotiating the sale of assets in Central America, which may include all or some of its operations in the region, which it considers units in Costa Rica, El Salvador, Guatemala, Nicaragua and Panama.

The Spanish newspaper Expansión had previously reported that Telefónica was in talks with América Móvil, which is based in Mexico.

The sale is small compared to the size of Telefonica and having assets that are not important to the group makes sense, Deutsche Bank analysts said in a note.

The Central American unit represented 4.6 percent of the operating income of the Telefónica group in the first nine months of last year.

América Móvil is the leading company in integrated telecommunications services in Latin America. Excluding China and India, it is the largest worldwide in terms of mobile subscribers. It offers a portfolio of communication services and solutions in 25 countries in Latin America, the United States and Central and Eastern Europe.

via: Alto Nivel