Argentina Blocks Telecom Mega-Merger

Argentina's presidential office has halted Telecom's acquisition of Telefonica's local unit to prevent market concentration in mobile, fixed-line, and internet services. The Spanish company Telefonica is selling its unit to reduce its Latin American presence, with the deal valued at $1.245 billion.

In a significant regulatory intervention, Argentina's presidential office announced on Friday the suspension of Telecom's planned acquisition of Telefonica's local unit. The decision aims to prevent the potential creation of a telecom behemoth capable of dominating the country's mobile, fixed-line, and internet services sectors.

The Spanish telecommunications giant Telefonica had earlier declared its intention to offload its Argentine operations to Telecom Argentina. The move is part of Telefonica's broader strategy to reduce its business footprint across Latin America, with the transaction valued at $1.245 billion.

This regulatory action underscores the Argentine government's vigilance against monopolistic practices that could harm competition and consumer choice. As the telecom landscape evolves, market dynamics remain under close scrutiny to ensure fair practices.

(With inputs from agencies.)