Embratel Participacoes Pours $944M in Mexico’s Claro
Brazilian Embratel Participacoes will invest in $944 million (BRL2.2 billion) into Mexico-based mobile phone company Claro as part of a plan to merge the group's fixed and mobile divisions.
Both Claro and Embratel are controlled by Slim's America Movil SAB de CV, which also owns cable television unit Net Servicos de Comunicacao SA. Earlier this year, America Movil SAB de CV unveiled a plan to merge its operations in Brazil.
Embratel will invest the money in exchange for shares in privately held Claro as part of a plan to merge the group's fixed and mobile units, the company said late Thursday.
According to analysts, the merger of operations could reduce costs.
Embratel is Brazil's third-largest fixed-line phone company in terms of market share, behind Brazil's Oi SA and Telefónica Brasil SA, part of Spain's Telefonica SA.
Claro, meanwhile, is Brazil's third largest mobile phone company behind Telefónica and TIM Participacoes SA, of Telecom Italia.Source: Wall Street Journal