Brazil’s prosecutor’s office recommended that antitrust regulator Cade block the sale of Oi mobile operations to local rivals TIM, Telefonica Brasil’s Vivo and Claro, a subsidiary of Mexico’s America Movil, reported Nasdaq.
The move sent shares in Oi – which is under bankruptcy protection – sharply down in early trading on Monday, while those of Telefonica’s Vivo and Telecom Italia’s TIM were also in negative territory.
Waldir Alves, who represents the prosecutor’s office at Cade, said in a Sunday report the deal should be blocked due to a “competition violation,” also mentioning “potential exclusionary practices.”
The winning trio, which had submitted an initial bid in July, plans to split Oi’s assets once they have antitrust approval. Oi, which filed for bankruptcy protection in 2016, is selling assets to repay creditors.
The companies said the base price came to 15.744 billion reais, with another 756 million reais to finance so-called “transition services,” which Oi will carry out over the next year in order to facilitate the transfer of assets.
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
BHP Unveils £31bn Mining Megamerger Proposal with Anglo American
Apr 25, 2024 by
nhoch@pymnts.com
ByteDance Prefers Shutdown Over Sale of TikTok Amid US Ban Threats
Apr 25, 2024 by
CPI
FCC Votes to Restore Net Neutrality Rules
Apr 25, 2024 by
nhoch@pymnts.com
Apple Rejects Spotify’s Updated App Over In-App Pricing Disclosure
Apr 25, 2024 by
CPI
FCC Set to Reinstate Net Neutrality Rules Today
Apr 25, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Economics of Criminal Antitrust
Apr 19, 2024 by
CPI
Navigating Economic Expert Work in Criminal Antitrust Litigation
Apr 19, 2024 by
CPI
The Increased Importance of Economics in Cartel Cases
Apr 19, 2024 by
CPI
A Law and Economics Analysis of the Antitrust Treatment of Physician Collective Price Agreements
Apr 19, 2024 by
CPI
Information Exchange In Criminal Antitrust Cases: How Economic Testimony Can Tip The Scales
Apr 19, 2024 by
CPI