Mexican broadcaster Televisa will learn next week whether its appeal to the Federal Competition Commission (Cofeco) to acquire a 50% stake in mobile operator Iusacell has been successful.
Cofeco, which initially blocked the deal in January on …
Mexican broadcaster Televisa will learn next week whether its appeal to the Federal Competition Commission (Cofeco) to acquire a 50% stake in mobile operator Iusacell has been successful.
Cofeco, which initially blocked the deal in January on competition grounds, made its final decision on the US$1.6bn deal on Wednesday.
While the outcome of the ruling has not been announced yet, it is expected that the companies will be informed about the decision soon, likely next week.
The acquisition was initially blocked as Cofeco worried the deal could negatively affect competition in the TV market. Iusacell’s parent company, Grupo Salinas, controls TV Azteca, the broadcaster that dominates Mexico’s TV market along with Televisa.
Cofeco’s five adjudicators blocked the deal by three to two.
If Televisa successfully managed to allay the regulator’s concerns that it could collude with TV Azteca, Cofeco may now have decided to give the green light for the transaction.
If the stake is acquired, Iusacell would have two powerful backers and may be able to mount a challenge to Carlos Slim’s America Movil. A recent Moody’s report stated Telcel, a subsidiary of America Movil, serves roughly 70% of Mexico’s wireless users. Iusacell has only around 5 percent of the mobile market, according to Reuters.
Last week Mexico’s telecoms regulator, Cofetel, welcomed Televisa’s planned acquisition. Its head, Mony de Swaan, said the deal would allow more competitive prices for consumers. Cofetel is entirely separate from Cofeco and has had no part to play in the appeal process.
