The Chilean competition authority has suspended the merger between telecoms operator Entel and telecoms/internet provider Grupo GTD, citing concerns that the deal could harm competition.
The country’s Tribunal for the Defence of Free Competition…
The Chilean competition authority has suspended the merger between telecoms operator Entel and telecoms/internet provider Grupo GTD, citing concerns that the deal could harm competition.
The country’s Tribunal for the Defence of Free Competition (TDLC) announced that the merger had been suspended, after it received a report from the FNE, the national agency that oversees competition in the Chilean economy.
In its report, the FNE concluded that the deal presented various risks to free competition.
It suggested that there would be a risk of greater concentration with spectrum in the 3,400-3,600MHz band, with the merged company holding up to three quarters of spectrum allocations in some regions.
It also said that the deal would see Entel becoming the dominant provider of broadband and fixed telephone services in certain regions, increasing the levels of market concentration and “the risks of anticompetitive conduct”.
The FNE advised the TDLC to impose certain conditions on the deal.
These conditions include forcing Entel to divest 50MHz of spectrum in the 3,400-3,600MHz band.
Another condition would force the merged company to continue offering GTD’s services to the public for two years.
Entel announced the proposed merger with Grupo GTD in December. The merger would take place through a share exchange, with Grupo GTD being left with a 9.8% stake in Entel once the deal had been completed.
The agreement was made between Inversiones Altel, which holds a 54% stake in Entel, and Inmobiliaria e Inversiones El Coigue Limitada (Coigue), the controlling company of Grupo GTD.
Inversiones Altel is a subsidiary of the Almendral holding company.
Entel provides fixed, mobile and internet services.
Grupo GTD is a holding company with seven separate businesses, which provide a range of telecoms, internet and TV services.
