Spanish and Latin American carrier Telefónica has reached an agreement with Portugal Telecom to purchase 50% of Brasilcel held by the Portuguese operator, after raising it bid for the third time to €7.5bn.
The entity to result from the Telesp-Vivo business combination, is said to be the largest integrated operator in Brazil by all key metrics: by customer numbers, revenue/OIBDA , and profitability.
Telefónica said that this acquisition will have a positive impact on its earnings and cash flow generation fromyear one. The transaction is expected to close within 60 days at the latest, the estimated period of time required to obtain the necessary Brazilian regulatory approvals.
Cesar Alierta, chairman of Telefónica, said: "We are delighted to have reached this agreement with Portugal Telecom which benefits both companies shareholders. It is a unique value creation opportunity. Vivo leads the Brazilian mobile telephony market, a market to which Telefónica is strategically committed".
