Argentina’s telecom regulator will not allow Grupo Clarin to move ahead with its acquisition of mobile operator Nextel.
Earlier this month NII Holdings announced that it had agreed to sell 49% of Nextel Argentina to Clarin for US$178 million, via a deal that also gave the media group the option to purchase the remaining 51%.
But Argentina’s Autoridad Federal de las Tecnologías de la Información y las Comunicaciones (AFTIC) on Friday ruled that the proposed transaction violates the law since it was brokered without regulatory authorisation, Reuters reported, citing a statement from the regulator.
NII Holdings has been looking for a buyer for Nextel Argentina for some time. Local Argentine businessmen Sergio Szpolski and Matías Garfunkel were linked with the company more than a year ago, and 2015 brought fresh reports that the firm would be sold to private equity buyers.
With AFTIC’s rejection of the Clarin deal, it could be back to the drawing board though.
The firm had hoped to offload the Argentina asset in order to focus on its one remaining mobile operator unit in Brazil.
Nextel is the fifth largest mobile operator in Brazil and, despite the fact that its market share is less than 1%, NII is keen to build up the business.
NII Holdings emerged from bankruptcy protection in June. Its latest quarterly results, for the three months to the end of June, showed that it still faces significant challenges; revenues slid and it posted a hefty operating loss.
However, the telco reported a growing 3G customer base in Brazil, which provided a much-needed bright spot in the numbers.
