The Argentine president's office issued a statement stressing that it will defend free competition and user choice.
Argentine President Javier Milei has threatened to torpedo the sale of Telefónica's subsidiary in Argentina for 1.245 billion dollars to Telecom Argentina, controlled by the Clarín media group, citing the defence of free competition.
As soon as the news was communicated to the Spanish and Argentine stock market supervisors, the Argentine president's office issued a statement in which it stressed that it would defend free competition and user choice.
Specifically, the statement notes that "based on reports circulating about the potential acquisition of the Telefónica Group by Telecom, part of the Clarín Group, the National Communications Agency (ENACOM) and the National Commission for the Defense of Competition (CNCD) will be called upon to assess whether this operation constitutes the formation of a monopoly."
"This acquisition could leave approximately 70% of telecommunications services in the hands of a single economic group, which would create a monopoly formed thanks to decades of state benefits received by the company. If this is the case, the National State will take all pertinent measures to prevent it," says the official statement from the Office of President Javier Milei.
Furthermore, it points out that "the current regulatory framework establishes a system of control over transfers, assignments and acquisitions in the case of information and communications, and as occurs in other Western countries, the national government is committed to avoiding the formation of a new monopoly, which with these characteristics, created in light of decades of state benefits, would go against free competition and threaten the disinflationary process that Argentina is going through."
He stressed that "this Government lowered inflation for the communications segment from 15.6% in December 2023 to 2.3% in January of this year, and is determined to continue this process."
The presidential statement concludes by stating that "the national government will take all measures to guarantee users' right to choose, free competition, and accessibility to telecommunications services."
This is the first major divestment since Marc Murtra took over as president of Telefónica on January 18 and is in line with the Spanish teleco's strategy of "gradually reducing" its "exposure to Latin America."
The total price for 100% of the shares transferred amounts to 1,245 million US dollars. The signing and closing of the transaction took place simultaneously today. This operation is part of the Telefónica Group's asset portfolio management policy.
