América Móvil to acquire Brazilian cableco Net
Local sources report that América Móvil’s Brazilian arm, Embratel Participacoes, will buy Brazilian broadcaster Globo Comunicacao e Participacoes’ shares in cable-co, Net Serviços de Comunicação, securing control of the company.
Permission for the deal was granted by Brazilian regulator, Anatel, following a change in the country’s law.
The law change allowed foreign control of cable carriers in the country while also banning broadcasters from controlling communications companies, forcing Globo to relinquish control of Net.
Before the change AM held 92% of Net’s equity but only wielded 49% of voting rights in the company.
Net holds a 26% share of the 15 million subscriber Brazilian broadband market. The market experienced 17.3% growth last year.