Liberty Latin America and América Móvil merge Chilean operations
Liberty Latin America and América Móvil confirm that the Chilean National Economic Prosecutor’s Office (FNE) has approved their deal to combine their respective Chilean operations.
Under the terms of the agreement, Liberty Latin America's VTR and América Móvil's Claro Chile will be merged to form a 50:50 joint venture. Since getting the greenlight from FNE, the operators have met all contractual obligations and confirm the completion of the transaction.
“This is an important moment that will transform the telecommunications industry in Chile as we are now cleared to accelerate the country’s digital and connectivity goals for Chileans," said Balan Nair, CEO of Liberty Latin America and Daniel Hajj, CEO of América Móvil.
"The combination of VTR and Claro will create a new company that will generate greater benefits for both consumers and businesses and will further stimulate economic and social development by increasing access and coverage to more people in more places across the country.”
The new joint company, ClaroVTR, will be led by Alfredo Parot who was recently named as chief executive officer. Parot joined from Claro Chile where he most recently served as general manager, prior to this he spent 16 years at Entel Chile in a variety of senior commercial, operational, and technology roles.
The proposed merger between VTR and Claro Chile was announced in September 2021 with the aim of creating "a business with greater scale, product diversification, and a capital structure that will enable significant investment in its fixed fibre footprint expansion and maximise opportunities in 5G".
The deal also excludes all telecoms towers owned indirectly by AMX in Chile. However, earlier this year América Móvil completed the spinoff its telecoms towers and other infrastructure in Latin America to a new company known as Sitios Latinoamérica, S.A.B. de C.V. (Sitios Latam).