Latin America’s America Movil seems to be looking at making further acquisitions in Brazil and Argentina. In a filing with the U.S. SEC, the company said: “We may pursue further market consolidation in Brazil and Argentina depending on their terms and conditions.” However, the company added that it “can give no assurance as to the extent, timing or cost of such investment.” The plan is to invest as much as $3.5 billion this year, with most money to be spent on network expansion and improvements: 59% of this investment is heading to South America, 15% in Mexico and the US, with the rest split between Central America and the Caribbean.
Brazil and Argentina are becoming increasingly important for the group, with former being America Movil’s second-largest market after Mexico — the carrier had 44.4 million subscribers in Brazil at the end of 2009.
Unsurprisingly, America Movil is not the only company with big ideas. Its rivals are thinking along the same lines — for one thing, Brazilian operator Tele Norte Leste Participacoes (which is known as “Oi”) is looking at overseas expansion following the completion of its merger with Brasil Telecom.
We’ll keep our eyes on the ever vibrant Latin American mobile market and keep you folks in the loop. Stay tuned…
[Via: MobileBusinessBriefing]