Salvadoran Competition Superintendence (SC) declared ‘inadmissible’ the economic concentration request that America Movil submitted on March 5th to buy Telefonica’s shares in El Salvador, after the announcement made in January on the agreement to buy Telefonica’s subsidiary in the country for USD 315 million.
According to an official statement from the SC, America Movil was notified about the decision last April 29th. As established on Salvadoran laws, America Movil has the right to start a new process in order to request the authorization for the transaction, and notified it will proceed this way, as reported on May 15th.
In case the company asks a new concentration request with Telefonica, the SC will continue this process based on a technical, legal and economic analysis, with the aim of ensuring competition in the country, as established on Competition Law’s articles 31 to 35. As mentioned in official information given by America Movil, the company ‘will soon submit a new request, taking into account the indications made by the SC, with the purpose that it can start the analysis in depth and by itself about the proposed transaction on the current Law’s terms.