The Argentinian government has blocked Telefónica’s proposed $1.2 billion sale of its local unit amid competition concerns.
President Javier Milei’s office imposed the measure to prevent the Clarin Group-owned Telecom Argentina from gaining a monopoly in the country’s telecoms market.
The decision follows warnings from Argentina’s Commission for the Defence of Competition, which noted that the deal would grant Telecom Argentina around 61% of the mobile market and approximately 80% of residential broadband services, pending further analysis.
The prospective sale was unveiled in late February, with the Milei administration expressing concern from the outset, warning it would create a “monopoly formed thanks to decades of state benefits”.
“This acquisition could leave approximately 70% of telecommunications services in the hands of a single economic group,” Milei’s office said in a statement at the time. The state will take all pertinent measures to avoid this.”
Telecom Argentina told Reuters that it had not been informed of the block but would cooperate with further probes into the deal.
The sale is part of Telefónica’s consolidation of its Latin American brands to instead focus on its core markets such as Germany, Spain and the UK.
The telecom giant is exploring potential sales for its Mexican business, while its Peruvian arm filed for voluntary bankruptcy last month after falling foul of tax rules.
Earlier this month, Telefónica agreed to sell its controlling stake in Coltel to Millicom, the latter of which was also interested in the Argentinian business.
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