The merger between telecoms operator Entel and telecoms/internet provider Grupo GTD has collapsed, after the head of GTD’s controlling company was accused of deciding to pull out of the merger agreement.
The news was revealed in a letter to the…
The merger between telecoms operator Entel and telecoms/internet provider Grupo GTD has collapsed, after the head of GTD’s controlling company was accused of deciding to pull out of the merger agreement.
The news was revealed in a letter to the Chilean authorities by Alvaro Correa Rodriguez, the general manager of Entel’s controlling company Almendral.
Almendral’s Correa claimed that Juan Manuel Casanueva Prendez, the head of Grupo GTD’s controlling company, Coigue, had withdrawn from carrying out the Memorandum of Intention to merge the companies. The agreement had been announced in November.
Correa added that the merger would not now be carried out, owing to the “unilateral retraction” of Casanueva.
Correa Rodriguez’s letter was sent to the Chilean Securities and Insurance Supervisor (SVS). Coigue and Grupo GTD were not available for comment.
In a statement, Entel’s general manager, Antonio Buchi, said that the failure of the company to complete this merger motivated it to deepen its deployment of infrastructure for continued growth in fixed connectivity services.
When the deal was announced in November, Buchi had said it was of great importance for Entel and would allow it to improve in areas such as fixed connectivity and the home segment.
Last week, the Chilean competition authority, the TDLC, suspended the merger.
This followed a report by the FNE, a separate agency that oversees competition in the Chilean economy, which concluded that the merger presented risks to free competition.
The deal agreement was made between Inversiones Altel, which holds a 54% stake in Entel, and Inmobiliaria e Inversiones El Coigue Limitada (Coigue), Grupo GTD’s controlling company.
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.
