El Salvador’s Superintendency of Competition confirmed that it has received a request for approval of General International Telecom’s acquisition of Movistar (Telefonica Moviles) and Telefonica Multiservicios.
If it chooses to admit the application following a review, the competition watchdog will then have 90 days to conduct a technical analysis seeking to assess the impact of the proposed acquisition on competition in El Salvador’s mobile sector.
Earlier this month, Telefonica Centroamerica Inversiones reached an agreement with General International Telecom Limited for the sale of its entire 99.3% holding in Telefonica Moviles el Salvador for a total of US$144 million. The deal will require regulatory clearances before it can close.
Telefonica holds a 60% stake in Telefonica Centroamerica Inversiones, with the remaining 40% held by Corporacion Multi Inversiones. TeleGeography reports that the sale is part of a broader strategy by Telefonica to reduce its exposure to risk in Latin America and create value to improve return on capital.