Numerous reports indicate that Spanish incumbent Telefonica is seeking to merge its Brazilian units Telesp and Vivo Participacoes, in a bid to strengthen its position on the Brazilian telecoms market.
Telefonica is said to be considering a merger of its…
Numerous reports indicate that Spanish incumbent Telefonica is seeking to merge its Brazilian units Telesp and Vivo Participacoes, in a bid to strengthen its position on the Brazilian telecoms market.
Telefonica is said to be considering a merger of its mobile operator Vivo Participacoes, which it co-owns with Portugal Telecom, and its fixed line telco Telefonica Brazil, which operates as Telesp. Reports indicate that the Spanish operator is set to commence talks with Portugal Telecom within the coming weeks with regarding the deal.
Telefonica is said to be eager to strengthen its position on the Brazilian market, having been weakened by an increase in local competition. A merger between the two would generate cost savings and provide Telefonica with an integrated mobile and fixed line operator.
Further reports hint at Telefonica opening talks with Telecom Italia regarding a takeover of its Brazilian mobile operator TIM Brazil, which is the third largest on the local market, should talks with Portugal Telecom fall through.