AT&T’s Purchase of Iusacell Approved

by Murry Page

22 Dec 14

mazmessenger.com

On Sunday the Federal Competition Commission (FCC) approved AT&T Inc.’s $1.7 billion purchase of the cellphone company Iusacell.

Although the announcement by the FCC did not disclose the specific conditions for the sale, it did say it set conditions on the acquisition to “avoid risks to the process of competition” in markets where Iusacell would compete with America Movil.

America Movil is México’s biggest mobile operator, while Iusacell is third.

The FCC also said it approved Televisa’s sale of its 50 percent stake in Iusacell back to Grupo Salinas, from which AT&T will then buy the operator in its entirety.

AT&T will enter the Mexican market as a provider of mobile telecommunications services.

(from Reuters)

AT&T to Acquire Iusacell

 by Murry Page

8 Nov 14 

mazmessenger.com

 

AT&T said on Friday it has reached an agreement to acquire No. 3 Mexican wireless operator Iusacell from Grupo Salinas for $2.5 billion including debt. The sale comes a few months after AT&T sold its stake in America Movil to Carlos Slim Helu for $5.6 billion.

Ricardo Salinas is the head of Grupo Salinas, an empire of retail, banking, TV, and telecom businesses.  Iusacell, in which Salinas held a 50% stake, is one of México’s largest wireless providers, with 8.6 million subscribers and a network that covers 70% of the population.

On September 10 Grupo Televisa agreed to sell its 50 percent stake in Iusacell to its partner, Grupo Salinas, for $717 million. That deal must be finalized before AT&T’s acquisition of Iusacell.

In a statement AT&T said, “Our acquisition of Iusacell is a direct result of the reforms put in place by (Mexican) President (Enrique) Peña Nieto to encourage more competition and more investment in México.”

AT&T Chairman and CEO Randall Stephenson said, “Iusacell gives us a unique opportunity to create the first-ever North American Mobile Service area covering over 400 million consumers and businesses in México and the United States.”

(from Forbes)