Competition Superintendence of El Salvador received a request for the economic concentration authorization between America Movil (Claro) and Telefonica in that country. Nelson Guzman Mendoza, president of the entity, informed that a ‘technical, legal and financial analysis of the proposals will be carried out, so that both companies can finalize their merger after the purchase agreement announced in January.
The Superintendent explained that, once the application is submitted, a period of 15 days for admission will begin and, after admission, it will take another 90 days term to determine if the application for economic concentration is approved, denied or conditioned.
According to SC, América Móvil and Telefónica must present the companies identification, partners name, who is the legal representative, economic agents involved, the transaction aim, market share data, economic agents denomination or business name and the legal representative, constitution structure, financial statements of the immediately preceding legal year and social composition of the economic agents. In addition, the document must also include the description of the concentration, its objectives and projects of the legal act, and a mention of the economic agents involved, the main goods and services that they produce or offer, and the location of the economic agents establishments.
‘If we identify missing information in the analysis, and we consider it does not meet form requirements, a prevention is given for the economic agent, and more information is requested, said SC’s head, and added that the company will have two possible options: ‘if it does not make any correction, the request will be inadmissible. But, if it corrects, procedure will be admitted’.