Billionaire investor Ricardo Salinas is not willing to exit Mexican operator Iusacell, which Telefonica is rumoured to be examining as an M&A target.
Salinas, who owns half of Iusacell via his conglomerate Grupo Salinas, told local newspaper El…
Billionaire investor Ricardo Salinas is not willing to exit Mexican operator Iusacell, which Telefonica is rumoured to be examining as an M&A target.
Salinas, who owns half of Iusacell via his conglomerate Grupo Salinas, told local newspaper El Financiero that he had no plans to sell his stake.
The other half of Iusacell is owned by its main broadcasting rival Grupo Televisa, led by fellow tycoon Emilio Azcarraga.
The country’s mobile market is dominated by America Movil (AMX) subsidiary Telcel, which boasts roughly 70% of all customers. However, that position could change soon as pro-competition reforms are in the process of being introduced, designed to curtail AMX’s monopolistic position in the market.
Mexico’s new regulator, the IFT, is set to declare which companies it considers to be dominant in telecoms and broadcasting this week. After a company has been defined as dominant, regulatory measures can be imposed to address the perceived imbalance in the sector.
The change in the regulatory environment has led Telefonica to look closer at the country – where it has 19% of the mobile market – and it is said to have mandated BBVA and Lazard to advise on potential acquisitions.
In February Telefonica was reported to be in discussions with Salinas and Azcarraga regarding a merger with Iusacell, Mexico’s third largest mobile operator, and the Spanish giant was said to be the more likely acquirer.
In the interview Salinas said that Iusacell was performing better than ever and that he had no reason to sell. Privately-held Iusacell has around 7% of the mobile market and was valued at US$3.2bn in 2012 when Televisa bought into the operator.
