Mexican broadcaster Televisa has accepted conditions imposed by Mexico’s anti-monopoly regulator the Federal Competition Commission (Cofeco), to acquire 50% of mobile phone operator Grupo lusacell for $1.6 billion. Cofeco approved the acquisition plans last week. Cofeco’s approval came after the government agency had rejected the plan earlier this year.
Televisa released its decision on Monday; however, lusacell said it is still evaluating the ruling. According to Reuters, Luis Nino de Rivera, a spokesman for lusacell’s holding Grupo Salinas, said, “Each one has to make its own evaluation. The joint evaluation of the business was made a long time ago.”
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Since the initial rejection from Cofeco, the participants were given time to address concerns, though this month Mexico’s antitrust commission voted on an appeal of its earlier decision to reject the proposed deal.
The acquisition plan, which was announced in April 2011, calls for Televisa, the country’s largest television company, to pay $1.6 billion for half of lusacell, which controls less than 5% of Mexico’s mobile phone market.
Cofeco has subjected the approval to acceptance of certain conditions, including the conversion by Televisa of the debentures issued by GSF Telecom Holdings—the controlling company of Grupo lusacell—into common stock of GSF. (Check conditions here)
