Oi Group, formerly known as Telemar is the largest fixed operator in Brazil and the country’s fourth largest mobile carrier.
The telco is set to spin off four business units from its main operations as part of its ongoing bankruptcy protection proceedings.
Murmurs of a supposed takeover stretch as far back as March 2020 when it was first revealed that TIM could team with Telefonica for the deal.
In a statement, TIM said there will be a “new infrastructural balance in the Brazilian market” as a result of the transaction.
“With three major operators ensuring a high level of competition, customer benefits and adequate investment for the development of telecommunications infrastructure and the digitalisation of the country,” it added.
TIM received approval from Brazilian antitrust watchdog CADE in February, paving the way for the deal to be completed.
The watchdog noted that while there will be a reduction of competition in Brazil, there would be wider negative impacts if Oi became insolvent.
CADE said that the operator going bust would impact the fixed and broadband markets as well as other industries relying on its infrastructure.
