Telefónica sold its Argentine subsidiary to Telecom for USD 1.25 billion

The Clarín Group, through Telecom , bought the Argentine operations of Telefónica for an amount of 1.25 billion dollars. This was confirmed by business sources from Madrid to local media. The Spanish company decided to divest itself of its Argentine subsidiary to concentrate on European markets.

The acquisition sparked an immediate reaction from the National Government. The National Communications Agency ( ENACOM ) warned about the potential risk of monopolistic concentration that could affect the telecommunications sector.

In response to this, the agency stressed that the current regulatory framework provides for strict controls on transfers and acquisitions of ICT service licenses, reported the Argentine News Agency.

ENACOM reported that, together with the National Commission for the Defense of Competition (CNDC), it will evaluate the operation thoroughly. Both institutions have the responsibility of protecting user choice, free competition, affordability and accessibility of telecommunications services throughout the national territory.

“The current system of controls avoids oligopolistic positions and guarantees citizens’ rights to communication, information and freedom of expression,” ENACOM stressed in an official statement. The formal announcement of the agreement is scheduled for Tuesday at 6 p.m. local time (10 p.m. in Spain).