Telecom Italia (TIM), Telefonica and America Movil have finally completed the deal for its debt-laden rival Oi’s mobile assets, bringing an end to the long-drawn-out deal.
In a regulatory filing from Oi, the three purchasers paid a total of BRL14.47 billion (US$3.1bn). In separate statements, Telecom Italia said it paid approximately BRL7 billion, while America Movil unit Claro confirmed it will pay BRL3.5 billion, and Telefonica (Vivo) will fork out BRL5.3 billion.
But the closing of the deal still requires approval from competition and telecoms authorities CADE and Anatel, however, regulatory approval was previously given the green light under conditions.
Telecom Italia said in its release upon closing of this deal there will form a new “infrastructural balance in the Brazilian market” with three carriers “ensuring a high level of competition”, resulting in consumer benefits and “adequate” investment to infrastructure and Brazil’s digital transformation.
Meanwhile, America Movil noted the transaction has created additional value for its unit Claro, customers and shareholders through “increased growth, generation of operating efficiencies and improvements in service quality.”
Telefonica detailed that in the transaction it acquired 12.5 million customers which is equivalent to 30% of Oi's total mobile customer base, citing Anatel data. It also gained 43MHz of spectrum, and contracts for the use of 2,700 infrastructure sites (19% of Oi's portfolio).
The deal had seen many roadblocks since the purchasers came together in 2020 to hoover up their failing rival.