Banca March | The board of CADE, Brazil’s competition body, has given the green light to the sale of Oil Movel, the fixed line business belonging to the country’s fourth fixed line operator Oi. It has been bought by the consortium formed by Telefónica – it operates under the Vivo brand in Brazil – Italy’s TIM and Mexico’s Claro. We should recall that the combined offer from Telefónica, TIM and Claro was declared the winner in December 2020, for a total value of 16.5 billion reais.
Now the consortium will be able to split up the assets, including clients, frequencies and tower contracts. In Telefónica‘s case, it will mean shelling out 33% of the total value of the offer. This will be around 5.5 billion reais or €910 million in exchange – approximately 3.6% of Telefónica’s stock market value. For this price, Telefónica Brasil will gain an additional 10,5 million clients – approx. 29% of Oi’s total mobile client base -, 46% of the frequencies and 19% of the Brazilian group’s mobile phone towers which were acquired. This acquisition is Telefónica’s biggest one in the last few years, after various ones when it was divesting to reduce debt.