Spain’s incumbent operator Telefónica has received approval from Brazil’s telecom regulator Anatel for its acquisition of Vivo.
Telefónica was locked in a two-month battle with Portugal Telecom over ownership of their joint venture, Brazil’s largest…
Spain’s incumbent operator Telefónica has received approval from Brazil’s telecom regulator Anatel for its acquisition of Vivo.
Telefónica was locked in a two-month battle with Portugal Telecom over ownership of their joint venture, Brazil’s largest mobile operator. The saga culminated in PT agreeing to sell its share in Brasilcel, the company that controls Vivo, to its Iberian neighbour for US$9.7bn.
A Spanish Securities market statement confirmed that Telefónica acquired the 50% of the shares of Brasilcel owned by PT, having made a first payment of E4.5bn (US$6.1bn). Further payments will follow in December and October. PT can ask for an earlier payment in July 2011, but this will reduce Telefónica’s final bill by E25m (US$33.7m).
Anatel said the deal is dependent on Telefónica ensuring that Vivo extends its 3G network in Brazil, that several towns without coverage get a new network, and that universities have access to Vivo’s fibre-optic network. Anatel’s provisional approval means the Vivo deal now goes to Brazil’s Administrative Council on Economic Defense, a body that guarantees market competition.
Telefónica did not respond to requests for comment.
