Televisa, the king of broadcast television in Mexico, on Monday accepted conditions laid down by regulators for its planned acquisition of half of No. 3 wireless operator, Iusacell.
The cash and convertible-debt transaction will leave Televisa with 50 percent of the shares of Iusacell parent company GSF Telecom Holdings, the media conglomerate said in a statement.
The remainder of GSF is to remain under the control of Grupo Salinas, owner of Television Azteca, the other player in Mexico's broadcast TV duopoly.
The Federal Competition Commission, or CFC, said last Thursday it had approved Televisa's bid for half of Iusacell, but with conditions to avert the risk of collusion between Grupo Televisa and Grupo Salinas.
Those conditions include non-discrimination in the sale of advertising to telecoms firms; the separation of Iusacell's management from that of the broadcast and pay TV businesses of Televisa and Grupo Salinas; and a requirement that broadcast and pay TV content be sold separately.
The CFC's approval also came with the proviso that "if an auction of a third (nationwide broadcast) television channel is not successfully completed in 24 months, a mechanism will be automatically activated to dissolve the alliance between Grupo Televisa and Grupo Salinas in Iusacell."
The entire process is to be supervised by the CFC and submitted to "independent audits."
Iusacell is the No. 3 operator in a wireless market that America Movil-controlled Telcel dominates with a 70 percent share. EFE