.jpg)
America Movil, the center of multi billionaire, Carlos Slim's telecommunications kingdom, is in the process of taking over Carso. The deal is valued at above $24 billion which will give America Movil admittance to fixed line operations managed by Telmex Internacional SAB unit of Carso Global. This deal will also give America Movil a substantial managing stake in Telmex, the biggest fixed line operator in Mexico.
The deal would place America Movil at the heart of the contemporary market for mobile Internet and fixed line communications. This market is supposedly going to grow quickly in the near and distant future. The deal will also permit America Movil to cash in on a growing middle class that will have more and more money to splurge on computers and smartphones, technological advances that are made every now and then and an increasing hunger among mobile phone users for games, movies and other grave data communications.
According to senior HSBC analyst, Richard Dineen, this deal is one that takes the future into consideration. It places all the assets in such a way that they can exploit all the trends in the future regarding mobile services and fixed line communication.
However, according to analysts, this transaction prepares to boost for the ongoing already rough clash between America Movil and its rivals in the region, mainly Telefonica SA. A threatening sale of space on Mexico’s cable fiber network can make matters difficult for America Movil by accumulating some new rivals to the already long list.
The announcement of the bid for Carso by America Movil was made in January. It has received a clearance from all of America Movil’s shareholders and the Mexican regulators. America Movil has also manged to raise close to $5 billion in debt sales to help in the payment for the takeover.
All the regulators of the countries in which Telmex operates should also approve of the deal that America Movil wishes to finish in May.
