America Movil courting China Mobile for Mexican assets

America Movil has reportedly contacted several operators that it believes could be interested in acquiring some of the Mexican assets that it is being forced to sell.

The prospective buyers named by Bloomberg include AT&T, Japanese operator Softbank, Canada’s Bell Mobility and China Mobile. This would mark a major step into international markets for China Mobile, which has traditionally focused on its home market with very few forays into overseas territories.

America Movil is trying to shift infrastructure worth $17.5 billion situated along Mexico’s eastern coast, following new regulation intended to restrict the group’s dominance. It holds around 70% of the country’s mobile market and 80% of fixed.

The group announced in July that it would sell off assets to bring its market share to below 50%, with CEO Daniel Hajj recently stating that this should create more competition in Mexico. Formal bidding has not yet commenced.

To compensate for losing its dominance in Mexico, America Movil is making acquisitions elsewhere, including Europe. It is also believed to be discussing a potential joint bid for Telecom Italia’s Brazilian unit TIM Participacoes, partnership with Telefonica and Brazilian operator Oi.

 

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