Telefonica is in talks to combine its Mexico unit with Iusacell. Via this move, the companies plan to create a stronger competitor to America Movil, Bloomberg reports, citing unnamed people with knowledge of the matter. According to the same source, Telefonica and Iusacell have not decided yet which company would control the combined mobile operator. Telefonica is being advised by Banco Bilbao Vizcaya Argentaria and Lazard, the sources added.
America Movil currently serves nearly 70 percent of Mexico’s mobile phone subscribers. Combined with Iusacell, Telefonica would control almost all the rest of the market.
Telefonica had also studied a possible partnership with Mexican fixed-line operator Megacable a few months ago, people with knowledge of the matter said in November 2013.
