Convergencia Research, Consultoría especializada en Latinoamérica y Caribe
Thursday, March 17, 2016

Alliances Map in Argentina 2015

Large companies are concentrated locally and the new government is expected to close mergers and acquisitions

Alliances Map in Argentina 2015 - Credit: © 2015 Grupo Convergencia
Alliances Map in Argentina 2015 - Credit: © 2015 Grupo Convergencia

The end of the mandate of Cristina Fernandez de Kirchner leads to speculate on the possibility of changes of focus or rigor in regulatory decisions (media law, Argentina Digital and satellite law). The realization of a series of operations is contingent on who will lead the Executive from December 10. The most important involve large companies whose equity compositions are undefined or question: Grupo Clarin, Cablevision, Nextel, Fintech, Telecom Argentina, Telefe, Supercanal and Prisa. While some media conglomerates still benefit from kirchnerista period as the Indalo Group, others are unraveling, as Veintitrés.

One of the main movements that affects the 2015 edition of Convergence Alliances map is buying 49% of Nextel by Cablevision. Although the Federal Authority for Information Technology and Communications (Aftic) wanted to prevent the operation, for NII Holdings, controlling even the operator, the purchase is made. The multimedia has the option to stay with the rest of the operator, which could be in doubt after the bill by which the frequencies lost Arlink to Arsat, spectrum Nextel would have served transferred will be sent to Congress to compete.

The main incumbent operators also had local modifications. The purchase of GVT Brazil by Telefonica led the French Vivendi landing as principal shareholder of Telecom Italia (19.88%), and transitive, Telecom Argentina. Although it not seems feasible that the participation of the French control the local subsidiary, since participation derives from the artifice of share transactions unrelated to the commitment to provide services.

Moreover Teleco, a group that had formed in 2007 Assicurazioni Generali, Intesa Sanpaolo, Mediobanda and Telefonica, to control, with 22.4%, Telecom Italia was dissolved. Telefonica reported last June on writing division of the parent company of Telecom Italia, after the National Commission for the Defense of Competition Argentina has authorized the operation.

The Aftic also rejects the offer made Fintech in 2013 to buy Telecom to stay with the participation of Italians in the Argentina subsidiary. The Argentine regulator considered that a telecommunications operator can not be held by an investment fund that has no experience in the telecommunications sector, despite having 40% of Cablevision. However, the holding of David Martinez will appeal the measure and provide documentation while still maintaining 17% of Sofora and 1.58% direct Telecom.

Other major concentrations are confirmed in this sample is buying Directv by AT & T. By mid-year, the US telecommunications company won regulatory approval Communications (FCC for its acronym in English), an operation that impacts throughout the region, where more than 18 million users operator of satellite TV there . In 2016 Directv could accentuate the focus as a provider of mobile and fixed broadband.

The sector equipment suppliers is also drawing together. Reflecting this is the payment made by Nokia € 15,600 million to get 66.5% of Alcatel Lucent, transaction initiated in April this year and closed in early October. This union gave rise to a new company called Nokia Corporations, which comes to compete with Ericsson and Huawei. In another sector of the industry, Dell EMC bought for $ 67,000 million. This acquisition "will create the world's largest private technology company," as reported by the parties.

The Twenty Group, which for years took advantage of his good relationship with the executive and enjoyed good portions official pattern, recent months was quite hit and had to knock off subsidiaries. it could not compete to enter the mobile phone market and buy Nextel Argentina, so it came off the Chilean subsidiary that was acquired as part of the package. Also it disposed between sale and closure of some print media as Seven Days, Forbes, Contraeditorial, Lonely planet, diagonals Plate and looks south. By contrast, the Indalo Group, who knew how to weave good relations with Kirchner, during 2015 expanded its content business: he bought producing Designed for Television (PPT) to Diego Gvirtz, and The Court, which transmits matches Football for All . In addition the latter is responsible for all the audiovisual campaign of presidential candidate of the Front for Victory, Daniel Scioli.

The media law this year caused no changes in the structures of large media groups. But he continued licensing of SMEs, civil society organizations, universities and provincial governments. Telefe is still waiting to sell Cana 7 Neuquen and Bahia Blanca Channel 9 to meet standard. Supercanal has suspended its restructuring. Grupo Clarin remains static with the help of his legal team and network of relationships of power.

On the other hand, the Spanish group Prisa will merge with Albavisión Mexican group Remigio Angel González González (one of the owners of Channel 9), for between them, take control of AM 590 Radio Continental and Imaginaria FM, 40 main, Aspen, Arpeggio and RQR. Yet the merger, which according to press sources would materialize when government authorities change was confirmed.

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