Yet another tower deal has been announced – one of the biggest yet, comprising sites in Brazil, Chile, Peru and Argentina along with Germany and Spain.
American Tower Corporation has announced that it has entered into definitive agreements under which it will acquire multinational telecommunications company Telefonica’s subsidiary Telxius Towers, a global telecommunications infrastructure company.
The deal comprises approximately 30,722 existing communications sites in Brazil, Chile, Peru, Argentina, Germany and Spain. The total consideration for the transaction is said to be approximately €7.7 billion (or $9.4 billion).
American Tower says it expects to spend approximately $500 million to construct a committed pipeline of approximately 3,300 new sites in Germany and Brazil through 2025.
As well as the boost the deal will give to its European business, American Tower has noted that the agreement is complementary for its Latin American portfolio and positions it to drive strong long-term organic growth across both regions while augmenting its new build programmes and enhancing its relationships with key tenants.
American Tower is a leading independent owner, operator and developer of multitenant communications real estate with a portfolio of over 183,000 communications sites.
Telefónica has also welcomed the deal. The President of Telefónica, José María Álvarez-Pallete, said: "This is a deal that makes strategic sense within our roadmap. American Towers was our second supplier after Telxius.” He added: “After this great operation we will continue to focus on our most ambitious objectives: the integration of O2 with Virgin in the United Kingdom, the purchase of Oi mobile in Brazil and the reduction of debt.”
The company added that American Tower will now become Telefónica's leading supplier in both Europe and Latin America and maintains its status as a partner in strategic projects in Brazil, Argentina and Colombia.