Brazil's antitrust watchdog approves Oi's mobile ops sale with remedies (updated)

Telefonica Brasil, SA

09/02/2022 18:29

(Adds more information on regulator's decision, context, shares
reaction)
    SAO PAULO, Feb 9 (Reuters) - Brazil's antitrust regulator
Cade on Wednesday approved with remedies the sale of Oi SA
 OIBR3.SA  mobile operations to rivals TIM Participacoes SA
 TIMS3.SA , Telefonica Brasil SA  VIVT4.SA  and Claro, a
subsidiary of Mexico's America Movil  AMXL.MX .
    Cade's decision came after a 3-3 tie, with the agency
president Alexandre Cordeiro Macedo casting the deciding vote 
to approve the deal. 
    The regulator also unanimously approved the Brazilian
federal prosecutor's request to investigate potential antitrust
practices by the companies.    
     The country's prosecutor's office asked the regulator
earlier this week to block the sale due to a "competition
violation" and "potential exclusionary practices".  urn:newsml:reuters.com:*:nL1N2UI0XN
    The deal has been under scrutiny since late 2020, when the
three companies won the assets in an auction that was then
contested by rivals such as Algar Telecom. They submitted a
joint bid of 16.5 billion reais ($3.12 billion).  urn:newsml:reuters.com:*:nL1N2U81ZC
    Shares in Oi, which has been under bankruptcy protection
since 2016, were up almost 3.8% at 1.08 real following the
decision, after falling as much as 19% earlier.
     Those of Telefonica Brasil, which is controlled by Spain's
Telefonica  TEF.MC  and operates under the Vivo brand, were up
2.3% at 50.40 reais. Telecom Italia's  TLIT.MI  TIM rose 3.5% to
13.92 reais.
    Brazil's telecom regulator Anatel had approved the deal late
in January but the sale still required a green light from Cade. 
 

 (Reporting by Alberto Alerigi Jr. and Gabriel Araujo; Writing
by Peter Frontini; Editing by Kirsten Donovan)
 ((Peter.Siqueira@thomsonreuters.com; +55 11 56447727;))