AT&T is continuing its expansion to Mexico with an agreement to buy Nextel Mexico for USD 1.875 billion. The deal builds on the US operator's earlier takeover of Iusacell to add another 3 million customers and additional spectrum, retail and network assets. AT&T said Nextel's network covers some 76 million people, helping it realise its goal of creating a unified North American network spanning the US and Mexico and covering over 400 million people.
The acquisition excludes debt associated with Nextel Mexico and is subject to court approval in the bankruptcy proceedings underway in New York for NII Holdings, Nextel's parent company. NII said a competitive bidding process will need to be held under court supervision, and regulatory approval in Mexico is also needed. It expects the transaction to close by mid-2015. The sale should help NII emerge from Chapter 11 and refocus its business on its largest operation in Brazil.
