Javier Milei’s government warned Monday that he will investigate under the antimonopoly regulations belonging to 80% to the powerful Clarín Group and the Fintech fund, of Mexican businessman David Martínez Guzmán. If so, he said, “will take all relevant measures to avoid it.” The warning occurred hours after the announcement of the operation for an amount of 1,245 million dollars (approximately 1,189 million euros to the current exchange rate). For the Casa Rosada, “70% of the telecommunications services would remain in the hands of a single economic group, which would generate a monopoly, formed thanks to decades of state benefits.”
The Clarín group edits the most read newspaper in Argentina, has an open television channel, a 24 -hour and radio news signal. It also operates the main country fiber optic network and the largest payment television. In 2017, together with Fintech he stayed with the Assets of Telecom Argentina. Eight years later, it takes the great leap with the acquisition of Telefónica’s assets in Argentina. Telecom CEO, Roberto Nobile, said in a statement that the operation “demonstrates the vocation [de la empresa] to continue investing in Argentina within the framework of the current macroeconomic conditions, which add up to private and competitive investment. ”
The Nobile was a studied praise to the management of Milei, which now has in his hands the destiny of the operation through the National Commission for the Defense of Competition (CNCD). The government statement details that “the current regulatory framework establishes a control system on transfers, assignments and acquisitions in the case of information and communications ”. “As in other countries of the West,” he adds, “the government is committed to avoiding the formation of a new monopoly that, with these characteristics, created in the light of decades of state benefits, would go against free competition and would attempt against the deflationary process that Argentina is going through. ” “We will take all measures to guarantee the right of choice of users, free competition and accessibility to telecommunication services,” concludes the text, broadcast on social networks by the president’s office.
From Telecom, they just clarified that “according to the regulations”, the company “is making the corresponding regulatory presentations.”
Milei’s zeal against monopolies is a surprising turn with what he held last Friday in Washington DC. Towards the end of his speech, he said that, after many years of study, he had understood that “monopolies are not bad, unless they are armed by the State.” After recommending the article Monopoly and competitionof economist Murray Newton Rothbard, his main academic inspiring, said he became “capitalist anarco”, that is, he believes “in a state taken to the minimum expression.” Under this premise, state control bodies would have nothing to say about a purchase and sale operation of private companies. Milei’s reasons for Milei’s opinion can be sought in the bad relationship that the government has with the journalistic head of the Clarín Group, whom it considers opposition.
For the operation, Telecom had BBVA Bank as an advisor to the transaction and initial financing of several banks, including the aforementioned BBVA, Deutsche Bank, Santander and the ICBC for 1,170 million dollars. The Spanish group, which was present in Argentina since 1990, when the government of the Peronist Carlos Menem (1989-1999) privatized state Entel, had entrusted the sale of his business in Argentina weeks ago to JP Morgan and the law firm Latham & Watkins.
The departure from Argentina is part of a major telephone disinversion plan in Latin America that includes the sale of its subsidiary in Colombia for 370 million euros – in order to get the latest regulatory permits – and Mexico, whose sales operation is in hands of JP Morgan. The business in Brazil was outside the divest plan, considered one of the four strategic markets with Spain, the United Kingdom and Germany. Once the Latin American Plan concluded, only businesses will remain in Venezuela, Peru, Chile, Ecuador and Uruguay, whose divisions are for sale.
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