Brazilian regulator Anatel has approved the transfer of Telefonica’s 8.3% of voting shares in Telecom Italia (TI) to Vivendi, as part of the Spanish telco’s planned acquisition of broadband operator GVT.
In this second stage of the deal, Telefonica…
Brazilian regulator Anatel has approved the transfer of Telefonica’s 8.3% of voting shares in Telecom Italia (TI) to Vivendi, as part of the Spanish telco’s planned acquisition of broadband operator GVT.
In this second stage of the deal, Telefonica will reduce its voting shares in the Italian incumbent to 6.47%, while French conglomerate Vivendi will hold an approximate 5.7% direct stake in TI, as well as 11.3% of Telefonica’s preferential shares in Brazilian carrier Vivo.
The watchdog also said that Telefonica’s takeover of GVT will not affect the services provided by rival TIM Brasil and Intelig Telecomunicacoes, which are both indirectly owned by Telecom Italia.
Last month, Brazilian antitrust authority CADE granted preliminary approval of the deal, provided that both parties signed a merger control agreement to ensure competition in the markets where they operate.
The companies have committed to adopt remedies to eliminate competition concerns in the mobile telephony segment given that, as a result of the takeover, Spain’s Telefonica would still hold a direct stake in TI, while Vivendi would have stakes in both Vivo and TI.
Telefonica agreed the €7.24bn (US$9.3bn) cash-and-stock deal to buy GVT from Vivendi in September last year.
As part of the deal, the Spanish telecoms giant agreed to pay the Paris-based group €4.66bn in cash, from which about €450m in debt and other obligations would be deducted.
Telefonica is reported to be waiting for the GVT deal to close before submitting a joint bid with smaller rivals Oi and America Movil’s Claro to acquire and break up TIM Brasil.
