América Móvil takes control of Claro VTR in Chile
Lily Squires
12 July 2024
Freshfields Bruckhaus Deringer LLP and Cariola, Díez, Pérez-Cotapos in Santiago have helped Mexican telecoms titan América Móvil assume control of Chile’s Claro VTR, acquiring the stake from its joint venture partner Liberty Latin America.
The seller relied on three Baker Botts LLP offices and Carey in Santiago.
The deal was signed on 24 June and is subject to approval from Chilean antitrust authority Fiscalía Nacional Económica (FNE).
Chilean firms Pellegrini & Rencoret and FerradaNehme are advising América Móvil and Liberty, respectively, on the competition aspects of the acquisition.
No financial details have been disclosed.
In 2021, América Móvil and Liberty agreed to combine their Chilean operations, Claro Chile and VTR, to create Claro VTR. The merger was finalised in 2022, with each party holding a 50% stake in the newly formed entity. The same four firms advised on that agreement.
Since the merger, América Móvil financed Claro VTR through convertible notes. Liberty had until August 2024 to pay off its respective portion of the financing commitments, which would have allowed Claro VTR to continue as a 50-50 joint venture.
On 23 June, Liberty informed América Móvil that it would not exercise this right.
Following this decision, América Móvil will convert the convertible notes it holds into shares of Claro VTR, equivalent to a controlling interest of 91%. Liberty will retain 9% of Claro VTR’s capital upon closing.
América Móvil is the seventh-largest mobile network operator in the world. The business operates under its Claro subsidiaries in countries across Latin America. Earlier this year, Claro sold its Chilean satellite TV business – Claro DTH – to Tu Ves, a deal that involved Carey as counsel to the seller.
Liberty Latin America is the regional arm of mass media company Liberty Global. Last year, it hired Baker Botts to sell a portfolio of telecom towers to Phoenix Tower International, a deal that included assets in Panama.
Counsel to América Móvil
In-house counsel – Alejandro Cantú Jiménez
Freshfields Bruckhaus Deringer LLP
Counsel Enrique Dancausa and partner Andrea Basham in New York
Cariola, Díez, Pérez-Cotapos
Partners Juan Pablo Matus and Javier Cerón, and associates María Jesús Kipreos and Josefa Álvarez in Santiago
Pellegrini & Rencoret
Partner Pedro Rencoret, director Catalina Sierpe and associate María Ileana Menchaca in Santiago
Counsel to Liberty Latin America
In-house counsel – John Winter
Baker Botts LLP
Partner Jonathan Gordon and associate Henry Klimowicz in New York; partner Jim Marshall in Houston; and associate Carlos Marquez Washington, DC
Carey
Partners Pablo Iacobelli, Patricia Silberman and Jaime Carey, and associate Nicolás Marín in Santiago
FerradaNehme
Partners Nicole Nehme and Benjamín Mordoj, counsel Sebastián Dufeu, director Sebastián Morales and associate Gonzalo Villazón in Santiago
