Finance
Argentina suspends Telecom's purchase of Telefonica unit
Published by Global Banking & Finance Review®
Posted on March 21, 2025
2 min readLast updated: January 24, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on March 21, 2025
2 min readLast updated: January 24, 2026
Argentina halts Telecom's acquisition of Telefonica's unit due to market concentration concerns, impacting telecom sector competition.
(Reuters) -Argentina's presidential office on Friday said it issued a preventive measure to suspend Telecom's acquisition of Telefonica's local unit, claiming the pending merger could lead to excessive market concentration.
Spanish telecoms giant Telefonica said in February it was selling its unit in the country to Telecom Argentina for $1.245 billion as part of a strategy to reduce exposure to Latin America, prompting a pledge from President Javier Milei's government that it would try to prevent the formation of a monopoly.
Milei's office said the suspension would remain in place until more analysis was carried out.
The government's decision follows a recommendation from the National Commission for the Defense of Competition, which raised concerns about the impact of the merger on market fairness.
According to the Argentine government, the transaction would lead to a market concentration of 61% in the mobile telephone sector, 69% in fixed-line telephony, and up to 80% in residential internet services in some areas of the country.
Telecom Argentina, which is partially owned by Argentine media conglomerate Clarin Group, has expressed its intent to continue investing in the country's telecom infrastructure, particularly in expanding 5G and fiber optic networks.
Telecom Argentina did not immediately reply to requests for comment.
(Reporting by Natalia Siniawski; Editing by Kylie Madry; Editing by David Gregorio)
The main topic is Argentina's suspension of Telecom's acquisition of Telefonica's local unit due to concerns over market concentration.
The acquisition was suspended to prevent excessive market concentration in the telecom sector, as advised by the National Commission for the Defense of Competition.
The key companies involved are Telecom Argentina and Telefonica, with the Argentine government playing a regulatory role.
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