Conditional approval for Telefonica SA from Brazilian regulators

October 23, 2015

Telefonica SA, the leading telecommunications operator in the Spanish and Portuguese-speaking world, and a group of Italian financial investors, has been given conditional approval by Brazilian regulators to the purchase of a controlling stake in Telecom Italia SpA.

The conditions imposed by Anatel, the telecommunications regulating agency in Brazil, will be outlined in a news conference yet to be arranged.

Telefonica and Telecom Italia have overlapping cell phone operations in Brazil. Telefonica owns half of leading Brazilian cell phone operator Vivo Participacoes, and Telecom Italia owns Tim Participacoes, the second largest mobile operator in Brazil.

Approval by Brazilian regulators is the last hurdle for the €4.1bn deal announced in April 2015. Under the agreement, it is proposed that Telefonica and the investors would receive a 23.6% stake in the former Italian monopoly through an investment vehicle called Telco.