America Movil backs out of El Salvador deal

Latin American telecom giant America Movil has reneged on a deal to acquire the entire El Salvador operation of Digicel. Although the agreement had been finalised between the two parties, Digicel granted its consent for America Movil to pull out of the deal.

The deal covered a number of businesses; separately from the El Salvador operation, Digicel’s Honduras business will be taken over by America Movil. Meanwhile, the latter’s Claro network in Jamaica will now be operated by Digicel.

One reason for the deal’s cancellation may be that the El Salvador competition regulator had stipulated that America Movil would have to relinquish 20MHz of spectrum for the deal to gain regulatory permission.

America Movil has a major presence in Latin America and is currently expanding into Europe, with reports indicating that it may invest in the Polish operator Play.

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