Mexican broadcaster Televisa and cell phone company Iusacell have officially notified the federal competition commission that they agreed to the conditions imposed by the agency to allow them to join forces in mexican mobile phone market.
Televisa said last week that it had agreed to a series of conditions imposed by Cofeco to let it buy 50 percent of Iusacell, a $1.6 billion deal.
The transaction has been viewed as the biggest blow yet against Mexico’s leading cellphone operator Telcel, a unit of Carlos Slim’s America Movil, to dominate the market. Slim is the world’s richest man, with a recent net worth of $69 billion.
The government has denied Slim the chance to enter the television market, which is dominated by Emilio Azcarraga of Televisa and Ricardo Salinas Pliego of Iusacell affiliate TV Azteca, Mexico's No. 2 broadcaster.
The Televisa-Iusacell deal is contingent on the success of a planned government auction of new television frequencies, which could create at least one additional television network in Mexico. This condition is meant to discourage a possible landslide of legal appeals that could end up delaying the auction for months or years.