Digicel Buys Rival Network in Jamaica - to Sell Digicel Honduras and El Salvador
Published on: 13th Mar 2011
Note -- this news article is more than a year old.
Pan Caribbean operator, Digicel has announced that it has signed an agreement with America Movil to acquire its Claro business in Jamaica, and to sell to America Movil its businesses in El Salvador and Honduras.
In a very short statement, the companies said that the financial terms of the transaction are not being disclosed; however, there will be a net cash payment to Digicel.
Digicel is already the dominant operator in Jamaica after it broke the former Cable & Wireless monopoly but Claro was relaunched a couple of years ago with a huge marketing push, particularly aimed at the youth market.
According to figures from the Mobile World analysts, the combined market share of the two companies in Jamaica comes to 80%, leaving Cable & Wireless (now rebranded as Lime) with the remaining 20%. In any other market, a merger of the two largest mobile networks would raise serious anti-competitive issues.
Digicel confirmed that the transaction is subject to regulatory approvals and is expected to close in the second calendar quarter.