Brazilian cable TV operator Net Serviços de Comunicação integrates regional divisions

What: Brazilian cable TV operator Net Serviços will incorporate three subsidiaries, so as to simplify its corporate structure.
Why is it important: This comes from a larger strategy that involves a structural merger.

As reported by sources such as Telecompaper and TeleGeography, Brazilian cable TV operator Net Serviços de Comunicação, which is headquartered in São Paulo and is renowned as the largest cable television operator in Latin America (and part of the Mexico-based America Movil group), has announced that it will incorporate three subsidiaries –Net Brasilia, Net Rio and Jacarei Cabo. The merger will not change the capital of Net Serviços de Comunicação, which now holds 100 percent of the shares of the three companies.

This strategic move is part of a group-wide strategy to simplify the company holding structure and improve efficiency. In April 2013 America Movil revealed plans to merge its fixed and mobile telecoms and cable TV operations in Brazil, attempting to reduce its overall operational costs. Under such plan, AM will amalgamate Embratel Participaçoes, Claro-branded mobile unit Telecom Americas and Net Serviços.

The three AM units are currently evaluating options for a structural merger.