UPDATE 2-Mexico regulator approves America Movil separation, firm to challenge

From Reuters - March 5, 2018

(Adds detail from America Movil statement)

MEXICO CITY, March 5 (Reuters) - Mexicos telecommunications regulator on Monday said it approved a plan to separate part of American Movils fixed-line units into different entities, while the company said it will begin the process but plans to challenge the move in court.

The Federal Telecommunications Institute (IFT) ordered America Movil, controlled by the family of billionaire Carlos Slim, to break out part of its Telmex and Telnor units last year, ratcheting up antitrust measures against the company.

America Movil has two years to implement the separation, according to an IFT statement on Monday.

During that time, the firm will have to present the regulator with an asset and debt transfer plan.

The statement detailed that the new fixed-line businesses will be required to separate out local network services and have boards of directors independent of America Movil as well as brands that no longer use the names Telmex, Telnor or Telcel.

Telcel is America Movils flagship mobile services brand.

American Movil will start the process of separation but also challenge it, the company said in a filing with the Mexican stock exchange later on Monday.


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