El Salvador’s antitrust authority has cleared the way for America Movil to proceed with its proposed $315 million acquisition of Telefonica’s Central American business units, saying that it would allow the acquisition to pass providing the Mexican owned telco abides by competition and consumer protection guidelines.
America Movil operates as Claro in El Salvador, and the proposed $315 million acquisition would see Claro takeover Telefonica Moviles El Salvador and Telefonica Multiservicios, both of which trade under the Movistar brand name.
In a statement to the press, El Salvador’s antitrust regulator said that America Movil must agree to adhere to and continue with “all of the marketing strategies developed by Movistar and by Claro,” for the next seven years, ensuring continuity of choice for consumers.
Telefonica announced plans to slim down its portfolio in Latin America last year, hoping to raise around $1.5 billion by divesting various units in the region. Last month, the company successfully sold off its Costa Rican business unit for €425 million ($507 million) to Liberty Global, following the collapse of a previous deal with Millicom.