América Móvil had initially explored a joint bid with Entel for Telefónica’s Chilean enterprise however in the end determined to not proceed
In sum – what to know:
Chile stays strategic regardless of challenges – CEO Daniel Hajj described the market as “troublesome,” however stated the corporate continues investing to realize income, market share and operational synergies.
Telefónica sale seen as impartial competitively – Hajj stated Millicom’s acquisition doesn’t materially change the aggressive panorama, successfully changing one rival with one other.
Consolidation nonetheless a long-term purpose – América Móvil hopes for future consolidation in each cell and glued segments in Chile whereas making ready for broader M&A alternatives throughout Latin America.
Mexican telecom big América Móvil stated it is going to proceed investing to strengthen its place in Chile after deciding to not pursue Telefónica’s native operations, with executives noting that the change in possession is unlikely to change the aggressive panorama within the close to time period.
Throughout the firm’s This fall earnings name, the corporate’s CEO Daniel Hajj stated América Móvil had initially explored a joint bid with Entel for Telefónica’s Chilean enterprise however in the end determined to not proceed. The corporate cited regulatory complexity, the necessity to break up property, and the goal’s leverage as key components behind the choice.
“It was going to be slightly bit advanced as a result of regulation, the break up of the corporate, excessive leverage of the corporate… it was not a simple deal, and that’s why we determined to give up and to remain the place we’re,” Hajj stated.
Telefónica’s Chilean property have been just lately acquired by Millicom, a transfer that introduces a brand new operator into the market. Nonetheless, Hajj stated the change doesn’t considerably alter América Móvil’s aggressive outlook. “For us, it doesn’t change rather a lot… on the finish of the day, Millicom is a brand new entrant. So it doesn’t change something having Telefónica and to alter to Millicom,” he stated.
Regardless of describing Chile as a “troublesome market,” Hajj stated América Móvil is constant to take a position to enhance its place. The corporate is specializing in income progress, market-share features and operational synergies within the nation, he stated.
“We’re doing okay. We’re gaining revenues. We’re gaining market share. We’re doing all of the investments that we want, all of the synergies that we want,” Hajj added.
Trying forward, Hajj indicated that consolidation could be constructive for each the cell and glued segments in Chile, though the market is prone to stay aggressive within the close to time period. “I hope that sooner or later, we will consolidate the market in Chile, not solely within the wi-fi, additionally within the fastened,” he stated.
Extra broadly, the corporate expects a wave of consolidation throughout Latin America and is positioning itself to take part in selective offers, significantly involving smaller operators or fiber property.
America Movil is preliminarily concentrating on an total capital expenditure of 14-15% of revenues for 2026 and the approaching years, America Movil’s CFO Carlos Garcia stated.
