América Móvil and Telefónica to explore joint acquisition of WOM assets

América Móvil and Telefónica have signed a non-binding agreement to explore the potential joint acquisition of WOM’s assets, which are currently undergoing Chapter 11 reorganisation in the US. This arrangement allows both companies to assess the opportunity without being obligated to make a formal bid, giving them the flexibility to withdraw from the process at any time before an official offer is submitted. This non-binding nature allows them to evaluate the strategic and financial implications of the acquisition thoroughly.

The primary goal of the potential acquisition is to enhance telecommunications infrastructure in Chile. By acquiring WOM’s assets, América Móvil and Telefónica aim to improve high-speed network coverage and support the country’s digital transformation. This investment is expected to boost service quality and increase competition, which will benefit Chilean consumers through better connectivity and advanced digital solutions.

If the acquisition proceeds, it will require regulatory approvals, including from Chile’s National Economic Prosecutor’s Office, to ensure compliance with competition laws and sectoral regulations. This regulatory oversight is essential to address any potential legal and anti-competitive concerns, ensuring the transaction aligns with local and sector-specific requirements.