Reuters: Mergers News: Televisa to learn fate of Iusacell deal next week

Reuters: Mergers News Reuters.com is your source for breaking news, business, financial and investing news, including personal finance and stocks. Reuters is the leading global provider of news, financial information and technology solutions to the world's media, financial institutions, businesses and individuals. // via fulltextrssfeed.com

Televisa to learn fate of Iusacell deal next week Jun 7th 2012, 17:15 Thu Jun 7, 2012 1:15pm EDT * Televisa seeks to buy 50 pct of cellphone firm Iusacell * Mexican regulators blocked the proposed deal in January * Regulators have now made final decision but not announced it yet MEXICO CITY, June 7 (Reuters) - Mexican regulators will likely notify broadcaster Televisa and cell phone company Iusacell next week of their decision on whether the two companies can join forces to expand business in the phone market, a source told Reuters. Mexico's Federal Competition Commission (Cofeco) made a final decision on Wednesday about whether Televisa's planned $1.6 billion purchase of half of Iusacell can go forward but did not make the ruling public. "It was a very tough decision, it will likely be released next week" said a source with direct knowledge of the process, who requested not to be named. Cofeco's five-member board blocked the planned tie-up in January in a 3-to-2 vote, arguing the deal would create an incentive for the pair to fix advertising prices in anything from television spots to content downloaded on smartphones. Iusacell has the same owner as Mexico's No. 2 broadcaster, TV Azteca, who together with Televisa control almost all of Mexico's broadcasting market. Iusacell and Televisa appealed Cofeco's decision and the watchdog's ruling on Wednesday was the definitive decision on the acquisition. Televisa and TV Azteca have longed for a piece of Mexico's phone market, which is dominated by the world's richest man, Carlos Slim. Slim controls about 70 percent of the Mexican mobile market through cell phone giant America Movil and also has a share of about 80 percent of the country's fixed-line business. Iusacell has only around 5 percent of the mobile market. A growing number of analysts believe that the Televisa-Iusacell tie-up was approved under certain conditions. One condition could be that Televisa and TV Azteca are required to provide their popular programming, including soap operas and soccer matches, for free to cable companies. Link this Share this Digg this Email Reprints

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