Salinas Group takes control of Iusacell for $717 million

Mexican billionaire Ricardo Salinas is reportedly attempting to acquire 50% of Iusacell from broadcaster Televisa, in a deal which would give him full control of Mexico’s number three operator.

The $717 million deal is indicative of the Salinas Group’s increasing interest in Mexico following the country’s anti-monopoly reforms. The group, which describes itself as a “group of dynamic, fact-growing and technologically advanced companies”, aims to expand the operator’s commercial and technology infrastructure in Mexico.

Salinas has released a statement expressing an interest in finding an operating partner for Iusacell, saying that he is “in the process of selecting a world class strategic partner to strengthen the robust performance of [Iusacell] and jointly boost the most competitive telecommunications offer in Mexico”.

Telefonica has previously expressed an interest in a merger between Iusacell and its Mexican unit, Movistar. Salinas’ eagerness to find a partner may provide the Spanish group with an opportunity to capitalise on this interest. A tie-up would allow the resulting entity to challenge America Movil’s massively dominant Telcel more effectively.

Iusacell currently has around 8 million connections, while Movistar has almost 20 million. Both are dwarfed by Telcel’s 70 million.

 

Sign-up to our weekly newsletter

Keep up-to-date with all the latest news, articles, event and product updates posted on Developing Telecoms.
Subscribe to our FREE weekly email newsletters for the latest telecom info in developing and emerging markets globally.
Sending occasional e-mail from 3rd parties about industry white papers, online and live events relevant to subscribers helps us fund this website and free weekly newsletter. We never sell your personal data. Click here to view our privacy policy.