Liberty Latin America and Millicom signed a deal to combine operations in Costa Rica, a move positioned as providing the means for accelerating fibre investment and offering the latter’s customers a wider range of products.
If approved by authorities, the resulting entity is expected to be 86 per cent owned by Liberty and its minority local partner, with Millicom holding the remaining 14 per cent, though the exact breakdown is subject to late adjustment.
Both companies own fixed operations in the market. Liberty also runs the country’s largest mobile operator (according to GSMA Intelligence figures) after buying Telefonica’s operation in the country in 2021.
In a joint statement, Liberty and Millicom claimed the combination would increase fibre competition and “promote high-quality, good value services and access to the digital economy for all Costa Ricans”.
Millicom chair Mauricio Ramos added the combination would “significantly benefit the telecommunications sector” noting it would “generate new efficiencies and improve commercial offerings, providing customers with access to mobile services and premium content.”
The deal is expected to close in H2 2025.
Prior to Liberty striking its Costa Rica mobile deal in 2021, Millicom had attempted to buy Telefonica’s operation in the country itself with the intention of creating a converged operator there.
However, Millicom controversially backed-out, citing problems getting regulatory approval, with Telefonica subsequently dragging the matter to court. The pair appear to have now buried the hatchet given the two announced talks earlier this week on a deal for Telefonica’s operation in Colombia.
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Publish date : 2024-08-01 21:24:00
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