Announced last May, the purchase of Vogel Telecom by compatriot telecommunications provider Algar Telecom received an unrestricted approval report by Brazilian regulator Cade's General Superintendence (SG).
Brazil's Administrative Council for Economic Defense (Cade) published the order with the decision in the Official Gazette (DOU) this Monday, 28, after SG concluded that there is no risk of closing in the market or competition concerns arising from the operation.
The value of the operation was R$ 600 million. The agreement establishes the acquisition of shares representing at least 85.2% and at most 100% of Vogel’s total and voting capital.
In 2020, Grupo Algar had revenues above R$750 million. The company argued to Cade that the purchase of Vogel represents an investment opportunity to “expand its infrastructure and capacity to offer telecommunications solutions throughout Brazil.”
According to Cade’s General Superintendence, the operation does not raise concerns in terms of competition, due to the “low market shares held by the applicants in the horizontally and vertically related markets”.
Vogel Telecom is present in 150 cities across 13 states and the Distrito Federal and presides over a fibre-optic network that spans 27,000km.