Brazilian Watchdog OKs Bordeaux Acquisition Of Copel Telecom

Brazil’s antitrust regulator CADE has given its unconditional approval for the acquisition of Copel Telecom, the telecommunications subsidiary of Paraná state power firm Copel, by local investment fund Bordeaux for 2.39 billion reais (US$460 million).

Telecoms regulator Anatel previously gave the deal the green light in May. Bordeaux is the fund that previously acquired Sercomtel, another Paraná state telecommunications company, for 130 million reais (US$25.12 million). Sercomtel was owned by the city of Londrina (55%) and Copel (45%).

CADE’s technical superintendence considered that the combination of Sercomtel and Copel Telecom assets under the control of Bordeaux would not significantly impact competition in the Paraná market due to the presence of local internet providers and national operators in the state.

Copel Telecom manages a fiber backbone of over 34,000km connecting all 399 municipalities in the state, in addition to operating a datacenter to provide collocation services to enterprises. The company’s retail and B2B services are available in over 80 municipalities.

The company’s planned capex for this year, as approved by the company’s board in December, is 124 million reais (US$24 million).

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