AT&T eyes Mexico investment
18 September 2014 | Kavit Majithia
AT&T is reportedly open to making an acquisition in Mexico as América Móvil chief Carlos Slim prepares to divest some of his assets in the country.
Following a range of telecoms regulatory reforms in the country, Slim will bow to pressure and cut his market share in Mexico to below 50% from 70%, presenting opportunities for international companies to gain a share in the market.
AT&T’s chief strategy officer John Stankey is reported to have said that the Mexican market is of growing interest to the company, and AT&T has the depth and balance sheet to do a deal if there is an opportunitiy.
“Sometimes you don’t get to pick when they show up,” he said. “I think there is the possibility on the circumstances and valuation and size and regulatory dynamics. When you are in the M&A game, you learn that you can’t always force your timing.”
AT&T has also been rumoured to be interested in making an acquisition in Europe, but a play in Latin America could also be a possibility.
“Mexico… is the place that is prone to move into an incredible growth cycle,” Stankey added.
AT&T is presently attempting to a close a $49 billion deal to acquire satellite provider DirecTV.