He Government of Argentina It will investigate whether, agreed on Monday, does not configure a monopoly situation in the telecommunications market in the South American country.
The executive of Javier Milei announced in a statement that he will give intervention to the National Communications Entity (ENACOM, telecommunications regulator in Argentina) and the National Competition Commission of Competition (CNCD) “To assess whether this operation does not constitute the formation of a monopoly“.
In addition, he noted that “this acquisition could leave approximately 70 % of telecommunications services in the hands of a single economic group, which would generate a monopoly formed thanks to decades of state benefits that said company received”, in reference to the Argentine group of Media Clarín, one of the main Shareholders of Telecom Argentina.
The Milei government warned that, if a monopoly situation is confirmed, “the national state will take all measures relevant to Avoid it“.
Recalled that the current regulation framework establishes a control system on transfers, assignments and acquisitions of companies with information and communications services licenses.
“As in other countries of the West, the national government is committed to avoiding the formation of a new monopoly, which with these characteristics, created in the light of decades of state benefits, would go against free competition and threaten against the Disinflationary process that Argentina is going through, “adds the statement.
The Executive said that “will take all measures to guarantee the right of choice of usersfree competition, and accessibility to telecommunication services. “
Transaction valued at 1,245 million dollars
This Monday, Telefónica Latin America -company of the Spanish Telefónica Group – He reached an agreement with Telecom Argentina to sell all of its shares in the share capital of Telefónica Argentina.
According to a statement released by Telefónica Argentina, the transaction, valued at 1,245 million dollars, is part of the Spanish group strategy of “reducing exposure to the region and continuing to operate sustainably to build value for its shareholders.”
Telecom and Telefónica dominate the Argentine market for telecommunications since at the end of the 1990 companies.
Telecom Argentina, whose shares are quoted in the stock markets of Buenos Aires and New York, is participated in 28.16 % of Cablevisión Holding (company controlled by the Clarín Group) and 30.03 % by the Fintech fund Telecom (controlled by Mexican businessman David Martínez), while 21.84 % of the shares are in a trust and 11.42 % are in the administration portfolio National Social Security of Argentina.
