Mexican Regulators Prepare to Announce Decision in Televisa-Iusacell Deal
Published on: 7th Jun 2012
Note -- this news article is more than a year old.
Mexico's regulators have reportedly reached a decision on whether to allow the television broadcaster, Grupo Televisa to buy half of the mobile network, Iusacell in a USD1.6 billion deal. However, the decision will not be made public until all the parties involved have been notified.
The Federal Competition Commission (Cofeco) blocked the deal earlier this year over concerns that the enlarged company would have too tight a control on the advertising market. Iusacell owns a TV broadcaster of its own, TV Azteca .
The move is Televisa's second attempt to enter the local wireless market after a planned USD1.4 billion investment in NII Holdings (trading at Nextel) to build a 3G network broke down in 2010.
The move is also expected to boost the chances for Iusacell to challenge America Movil, which holds a dominating share in the mobile and landline markets.
If the deal is still blocked though, Grupo Televisa will also be left with USD1.6 billion of Grupo Iusacell's debt after it committed to buying that amount of debt, which would be converted into equity once the takeover was completed.