Mexico: America Movil split creates new Company

Mexico’s largest telecommunications firm announced last week the creation of a new company, formed after divesting several of their infrastructure assets. The new company, named Telesites, will share this infrastructure with their parent company.A proposal for the move will be presented to shareholders by company Chairman Carlos Slim on April 17.

America Movil was deemed Dominant by Mexico’s telecommunications regulator last year. Company executives announced their plans to split off some of their infrastructure assets, including passive cellular communications assets. The spinoff is expected to be completed around the end of June.

America Movil announced plans the sale or divestment of up to 20% of such assets in 2014, seeking to reduce their effective share of the market to below 50% and thus avoid tough regulations imposed by Mexico’s new Telecommunications Law.

Full content: Business Finance News

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.