Carlos Slim

Carlos Slim Integrating Telecom Companies

Mexican billionaire Carlos Slim has moved to merge his telecoms assets in Latin America in a bid to create an integrated mobile and fixed-line operator giant. “With this consolidation, the company will be able to offer integrated communications services in the region, independent of the platform on which they are generated,” America Movil said in a statement (pdf).

The deal is expected to create an integrated operator with around 250 million subscribers. A Financial Times report notes that the combination of the businesses will allow it to sell “triple-” and “quadruple-play” bundles of services (mobile, fixed-line, Internet, TV). It is also considered a strategy that will strengthen America Movil’s position against Latin American rivals such as Spain’s Telefonica and new entrants into the region such as Vivendi (which has recently entered Brazil).

Slim’s America Movil – Latin America’s largest mobile operator by subscribers – announced yesterday it was planning to acquire Telmex, Mexico’s leading fixed-line operator, and Telmex International, which provides similar services across Latin America. Both fixed-line businesses are also owned by Slim who is likely worth $59 billion, putting him in contention with Microsoft founder Bill Gates for status as the world’s richest man.

America Movil is looking to make the deal via an all-stock offer for Carso Global Telecom, a holding company that controls both Telmex and Telmex International. If Carso Global Telecom’s shareholders tender all their shares, America Movil would indirectly own 59.4 percent of Telmex and 60.7 percent of Telmex International. The deal remains subject to regulatory approval.

source : dailywireless.org