Sun | Oct 25, 2020

Claro expects Sept decision on Digicel deal

Published:Wednesday | September 7, 2011 | 12:00 AM

Mobile operator America Movil, which owns the Claro brand, says it expects its deal with Digicel Group to close by the end of September.

The Mexican company in March agreed to buy 100 per cent of Digicel's operations in Honduras and El Salvador, and sell its holdings in Jamaica.

"The completion of the transaction is, among other conditions, subject to governmental and regulatory approvals in Honduras, El Salvador and Jamaica and is expected to occur during the third quarter of 2011," said America Movil in a statement to shareholders dated September 2.

Last week, Jamaica approved Digicel's acquisition of Claro Jamaica, but Prime Minister Bruce Golding said that it is on the proviso that Digicel continue operating two separate networks in what is meant to be a check on the market leader's dominance. Digicel wanted to integrate the operations into a single network, but Golding rejected that plan.

Digicel's acquisition of Claro Jamaica gives it access to a 3G network in its home market.

Regulators in the two Central American territories are yet to announce their decisions.

The tri-country deal was initially expected to close in June or July.

business@gleanerjm.com