America Movil beefs up in Peru with two acquisitions - Mobile World Live

America Movil beefs up in Peru with two acquisitions

10 MAY 2016

America Movil’s Peruvian subsidiary struck agreements to acquire smaller rivals Olo Del Peru and TVS Wireless in the country for an undisclosed fee.

In a statement, the company said its local subsidiary America Movil Peru had reached purchase agreements with Metsanco Limited to acquire the two companies, which provide telecoms services throughout the country and also hold radio spectrum in the 2.5GHz band.

America Movil, which operates under the Claro brand, is the country’s second largest operator with an estimated 12.1 million connections, behind Telefonica, which boasts more than 16.8 million, according to GSMA Intelligence.

The tie-ups in Peru come after CFO Carlos Garcia Moreno reportedly told Reuters in March the company had no acquisitions planned, shortly after the release of its Q1 2016 financial results, which saw it take a sizable hit in its domestic market.

Greater competition in Mexico, coming from newcomer AT&T and Telefonica, saw overall revenue decline, while the company also grapples with the effects of the recession in Brazil.

Completion of the deals in Peru is subject to the closing of certain conditions being met, added America Movil.

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Kavit Majithia

Kavit joined Mobile World Live in May 2015 as Content Editor. He started his journalism career at the Press Association before joining Euromoney’s graduate scheme in April 2010. Read More >>

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