América Móvil’s $648 Million Acquisition of Telefónica El Salvador and Guatemala


Cleary Gottlieb Steen & Hamilton, Benjamín Valdez & Asociados, Comte & Font – Legalsa, Latham & Watkins and Arias advised on the deal

América Móvil S.A.B. de C.V. (América Móvil) executed its acquisition of 100 percent of the outstanding shares of Telefónica Móviles Guatemala S.A. (Telefónica Guatemala) for $333 million and its entry into an agreement to acquire 99.3 percent of the outstanding shares of Telefónica Móviles El Salvador S.A. de C.V. (Telefónica El Salvador) for $315 million.

The acquired companies provide mobile and fixed telecommunications services, including voice, data, and Pay TV, in Guatemala and El Salvador, respectively. The Telefónica Guatemala acquisition was completed on January 24, 2019. The Telefónica El Salvador acquisition was announced on January 24, 2019, and completion of the acquisition is subject to certain customary closing conditions, including regulatory approval.

América Móvil provides telecommunication services in 25 countries, and with this transaction, consolidates its position as one of the leading telecommunication service providers in Central America, strengthens its position in both countries to continue providing integrated telecom services, and positions itself to provide next generation services, including 5G.

Telefónica is one of the largest telecommunications companies in the world by market capitalization and number of customers, providing a comprehensive offering and quality of connectivity that is delivered over world-class fixed, mobile, and broadband networks. It runs operations in 17 countries, split into two geographic regions: Europe and Latin America.

Cleary Gottlieb Steen & Hamilton advised América Móvil S.A.B. de C.V. with Nicolás Grabar (Picture), Neil Whoriskey, Leonard C. Jacoby, William L. McRae, Arthur H. Kohn, Richard Bidstrup, Charles (Beau) Sterling, Paul V. Imperatore, Jamal Lama, Sabria Cornish, Jane C. Rosen, Shira Borzak, Jaehwan Park, Kylie N. Barza, Bobby Underwood, José Juan Vázquez O. and Jina Davidovich.

In El Salvador, Benjamín Valdez & Asociados advised América Móvil with Benjamin M. Valdez Tamayo, Luis Tevez Rivas, Raúl Oswaldo García, Alejandro Hernández and Karen Rosales.

In Guatemala, Comte & Font – Legalsa advised América Móvil with Alejandro Penados, David Font, Karina Calderón, Johann Hartleben, Marcela Argueta, Mónica Linares and Julia González.

Latham & Watkins advised Telefónica and Telefónica Centroamérica Inversiones, S.L. with Antonio Del Pino, Juan Picón, José Antonio Sánchez-Dafos, Jordi Domínguez, Jeffrey Tochner, Ignacio Domínguez, Ana González-Linares, Tessa Bernhardt, Ori Assa, Angel Marcial, Francisco Lanusse, Lorenza Molina S., Blanca Vázquez de Castro, Meredith Ward and Mathilda Persson.

In Guatemala, Arias advised Telefónica and Telefónica Centroamérica Inversiones, S.L. with Luis Pedro Del Valle, Ximena Tercero, Liz Gordillo Anleu, Florencio Gramajo, Jorge Ordoñez, Francisco Zuluaga, Cindy Arrivillaga, Rosa María Arenales, María Elena Barrientos and Francisco Zuluaga.

In El Salvador, Arias advised Telefónica and Telefónica Centroamérica Inversiones, S.L. with Lilian Arias, Roberta Gallardo, Luis Barahona, Zygmunt Brett, Morena Zavaleta, Fidel Márquez, Marcela Deras, Flor de María Cortez, Rolando Alvarenga, Roberto Bonilla, René García, Marcela Canjura and Adriana López.

Involved fees earner: Rosa María Arenales – Arias ; Lilian Arias – Arias ; Cindy Arrivillaga – Arias ; Maria Elena Barrientos – Arias ; Luis Pedro Del Valle – Arias ; Liz Gordillo – Arias ; Florencio Gramajo – Arias ; Jorge Ordoñez – Arias ; Ximena Tercero – Arias ; Luis Tevez Rivas – Benjamín Valdez & Asociados; Benjamín Valdez Tamayo – Benjamín Valdez & Asociados; Kylie Barza – Cleary Gottlieb Steen & Hamilton; Richard Bidstrup – Cleary Gottlieb Steen & Hamilton; Shira Borzak – Cleary Gottlieb Steen & Hamilton; Sabria Cornish – Cleary Gottlieb Steen & Hamilton; Nicolás Grabar – Cleary Gottlieb Steen & Hamilton; Paul Imperatore – Cleary Gottlieb Steen & Hamilton; Leonard Jacoby – Cleary Gottlieb Steen & Hamilton; Arthur Kohn – Cleary Gottlieb Steen & Hamilton; Jamal Lama – Cleary Gottlieb Steen & Hamilton; William McRae – Cleary Gottlieb Steen & Hamilton; Jaehwan Park – Cleary Gottlieb Steen & Hamilton; Jane Rosen – Cleary Gottlieb Steen & Hamilton; Charles Sterling – Cleary Gottlieb Steen & Hamilton; Bobby Underwood – Cleary Gottlieb Steen & Hamilton; Neil Whoriskey – Cleary Gottlieb Steen & Hamilton; Karina Calderón – Comte & Font – Legalsa; David Font – Comte & Font – Legalsa; Johann Hartleben – Comte & Font – Legalsa; Alejandro Penados – Comte & Font – Legalsa; Ori Assa – Latham & Watkins; Antonio Del Pino – Latham & Watkins; Jordi Dominguez – Latham & Watkins; Ignacio Domínguez – Latham & Watkins; Ana González-Linares – Latham & Watkins; José Antonio Sánchez-Dafos – Latham & Watkins; Juan Picón – Latham & Watkins; Jeffrey Tochner – Latham & Watkins; Blanca Vazquez de Castro – Latham & Watkins; Meredith Ward – Latham & Watkins;

Law Firms: Arias ; Benjamín Valdez & Asociados; Cleary Gottlieb Steen & Hamilton; Comte & Font – Legalsa; Latham & Watkins;

Clients: América Móvil; elefónica Centroamérica Inversiones, S.L.; Telefonica;

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Author: Ambrogio Visconti