Mexico billionaire Carlos Slim is reportedly ready to surrender to recent legislative overhauls to the telecommunications market.
Slim, the owner of top telco America Movil, is said to be planning a breakup of the conglomerate that was recently declared to hold a dominant position in the market. Slim had been weighing options for the company since the government took steps to reign in the dominance of America Movil and broadcast giant Grupo Televisa. Recent rules allowed officials to declare the two firms dominanct, which further allows them to impose certain regulations on the firm.
Congress officially passed new legislation Wednesday that further regulates the telco industry and crack down on anticompetitive behavior. Reports say the government is expected to introduce new rules for a proposed broadcasting spectrum auction, in which America Movil is expected to participate.
America Movil currently controls about 70 percent of Mexico’s wireless industry and 80 percent of landlines, reports say.
Slim did not elaborate on which assets he would divest, but in an interview given Wednesday, America Movil Vice President Arturo Elias said the company would not sell rural phone lines and that it is still examining which assets to sell.
Elias said he would prefer a single buyer.
Reports say the telco could make up to $8.6 billion through asset sales.
Full content: Bloomberg
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