Claro gets one step closer to Telefonica unit acquisitions in El Salvador

America Movil’s Claro has been looking to purchase two of Telefonica’s units in El Salvador since May last year, but fears around the deal stifling competition have slowed the process.

 

Claro is reportedly looking to purchase 99.3% of Telefonica Moviles El Salvador, while the precise equity it seeks in second unit Telefonica Multiservicios has not been revealed.

 

Today, the antitrust regulator has finally agreed to the proposed $315 million sale but has laid out a number of conditions which must be met to keep the region competitive. 

 

To continue offering customers a range of options, Claro must agree to continue with the “marketing strategies developed by Movistar and by Claro” for the following seven years, though the pricing plans could be improved. Additionally, the operator must agree not to make use of the spectrum owned by Movistar, which remains to be certified by regulators.

 

For Telefonica, this deal is the latest in a long line of asset sales in South America, with the company announcing at the end of last year that it would be withdrawing from its Latin markets (notably excluding Brazil) to focus on its home markets back in Europe. Last month, the Spanish operator sold off its Costa Rican unit to Liberty Global for almost half a billion Euros.