América Móvil to Acquire Telefónica El Salvador and Guatemala for $648 Million
January 29, 2019
Cleary Gottlieb is representing América Móvil S.A.B. de C.V. (América Móvil) in connection with its acquisition of 100 percent of the outstanding shares of Telefónica Móviles Guatemala S.A. (Telefónica Guatemala) for $333 million and its entry into an agreement to acquire 99.3 percent of the outstanding shares of Telefónica Móviles El Salvador S.A. de C.V. (Telefónica El Salvador) for $315 million.
The acquired companies provide mobile and fixed telecommunications services, including voice, data, and Pay TV, in Guatemala and El Salvador, respectively. The Telefónica Guatemala acquisition was completed on January 24, 2019. The Telefónica El Salvador acquisition was announced on January 24, 2019, and completion of the acquisition is subject to certain customary closing conditions, including regulatory approval.
América Móvil provides telecommunication services in 25 countries, and with this transaction, consolidates its position as one of the leading telecommunication service providers in Central America, strengthens its position in both countries to continue providing integrated telecom services, and positions itself to provide next generation services, including 5G.
Telefónica is one of the largest telecommunications companies in the world by market capitalization and number of customers, providing a comprehensive offering and quality of connectivity that is delivered over world-class fixed, mobile, and broadband networks. It runs operations in 17 countries, split into two geographic regions: Europe and Latin America.