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América Móvil Ends Entel Pact to Pursue Solo Bid for Telefónica Chile

The breakup turns the sale into a competitive auction likely to draw close antitrust scrutiny in Chile.

Overview

  • América Móvil signed a termination agreement ending its non-binding July 18 pact with Entel and said it will explore participating in the Telefónica Chile sale on its own.
  • Entel confirmed it will remain in the Telefónica-run process and is evaluating options that could lead to a binding offer, as its shares fell about 8.5% after the split was disclosed.
  • Sources cited by Diario Financiero report that WOM has already submitted a binding bid, a move that would still require review by Chile’s antitrust authority, the FNE.
  • Competition concerns loom given market shares reported for September: Movistar at 22.6%, Entel at 33.3%, and América Móvil’s ClaroVTR at 20.8%, which could complicate certain deal combinations.
  • The Chile sale advances Telefónica’s broader retreat from most of Latin America to focus on its core European markets.