According to the Argentine government, the merger of companies could lead to excessive market concentration
Argentina’s presidential office reported on Friday (21.mar.2025) that it issued a preventive measure to suspend the acquisition of the local unit of for the claiming that fusion could lead to excessive market concentration.
The Spanish telecommunications giant telephone said in February that she was selling her unit in the country to Telecom Argentina for $ 1.245 billion as part of a strategy to reduce exposure to Latin America, which led the government of Argentine president, promising that it would try to prevent the formation of a monopoly.
Milei’s office said the suspension will remain in force until further analysis is performed.
The government’s decision follows a recommendation of the National Competition Defense Commission, which raised concerns about the impact of the merger on the fair market.
According to the Argentine government, the transaction would lead to a market concentration of 61% in the mobile telephone sector, 69% in fixed lines and up to 80% in residential internet services in some regions of the country.
Telecom Argentina, partially detained by the Argentine media conglomerate has expressed its intention to continue investing in the country’s telecommunications infrastructure, particularly the expansion of 5G and fiber optic networks.
The company said in a statement that it was not formally notified of the preventive measure, but will cooperate with the authorities and deliver all the relevant information necessary to evaluate the transaction.
By Natalia Siniawski and Maximilian Heath.
