Brazil’s telecoms regulator has told América Móvil that it can combine its three local telecoms units on the condition that it registers the business with the local securities and exchange commission.
América Móvil wants to absorb its Brazilian…
Brazil’s telecoms regulator has told América Móvil that it can combine its three local telecoms units on the condition that it registers the business with the local securities and exchange commission.
América Móvil wants to absorb its Brazilian cableco, Net Serviços de Comunicação, and its fixed-line provider, Embratel, into its mobile operator, Claro.
Anatel would require Claro to list and have an open capital structure if the re-organisation was to happen. But Claro would not necessarily have to list shares on the stock market, according to a Reuters report.
This is because telecommunications law in the country requires a business that holds a government concession, like Embratel does, to be transparent.
In América Móvil’s Q2 results, it recorded R$8.8bn (US$3.9bn) in total revenues for its Brazilian businesses, which amounts to around of a quarter of the group’s income. It has said it wants to complete the merger of its Brazilian operations by the end of the year.