Telefonica has confirmed ongoing negotiations with an unnamed company in Mexico after an earlier report said the Spanish group was finalising the takeover of mobile operator Iusacell. In a statement to Spain's market regulator CNMV, Telefonica said “negotiations are open, although no agreement has been reached." Spanish website El Confidencial had earlier reported that Telefonica was close to acquiring its rival Iusacell for between EUR 2.5 to EUR 3 billion. Iusacell, Mexico’s third largest mobile operator, was valued at USD 3.2 billion when the broadcaster Televisa acquired a 50 percent stake in the company in 2012. Mexican billionaire Ricardo Salinas owns the remaining 50 percent of the operator.
A Telefonica-Iusacell combination would account for around 28 per cent of the Mexican mobile market, still well behind the dominant America Movil, which has around 70 percent. However, in response to tough regulatory demands, America Movil is looking to offload assets to cut its market share to below 50 percent.
