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Telefónica's two ways to grow: purchases in Brazil and mergers in Europe


Telefónica live a moment of transition. A time of change because the operator is involved in several corporate processes at once. On the one hand, the merger of its UK business, O2. On the other, the purchase of part of Oi's mobile activity in Brazil. Two operations with which, precisely, it highlights what are your strengths to try to grow.

Your president, José María Álvarez-Pallete, has indicated on several occasions in recent months that it does not make sense that there are hundreds of telecommunications operators in the European Union, when it comes to a single market. He has done it at the same time as the Community court 'tugged' at the European Commission for vetoing the sale of O2 to Hutchison in 2016.

And if there are more operators in the EU, the option of mergers makes more sense than ever on a continental scale, they assume from the sector. In this way, the integration of Telefónica's business in the United Kingdom with that of Virgin Media, which expands capacity and reduces debt, is emerging as the way forward not only for Telefónica, but also for its rivals.


Spain, for the moment, is outside this integration scheme, waiting to see if there is a counterparty for MoreMobile. About to face the final stretch of July, No rival has presented a counter offer that hinders the one presented by the KKR, Cinven and Providence funds..

While in Europe there may be more mergers, in another of the key markets for Telefónica there may be acquisitions. The owner of Movistar wants to keep part of Oi's mobile business in Brazil. But she is not alone. It is a joint offer with TIM and Clear (the latter controlled by Carlos Slim, América Móvil). Each one wants the part of Oi that best suits the needs of their business.

It must be remembered that the United Kingdom and Brazil, together with Germany and Spain, are Telefónica's strategic markets. Instead, already in November it opened the door to withdrawal in the rest of Latin American countries. Corporate operations where, at the moment, there are no significant news.

Next week, the company based in Madrid's Las Tablas neighborhood presents its results at the end of the first half. It will be time for you to reveal more details of how your business will evolve.

. (tagsToTranslate) routes (t) Telephone (t) to (t) grow: (t) purchases (t) Brazil (t) mergers (t) Europe (t) Category: All (t) Category: Company News (t) Category: Pulses (t) Category: Sectorial: Communications

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