Minority Stake in Nextel Mexico to be Purchased by Televisa

Televisa

Official reports have confirmed that Televisa, the media giant, is all set to purchase a minority stake in Nextel Mexico, just as long as their joint bid for the new wireless capacity is successful, a development which is bound to increase competition in a market currently dominated by Carlos Slim.

The deal has come as a first by major corporate players as the Mexican Government goes ahead with the holding of long-awaited frequency auctions which are being viewed as leading to a "shake-up" in the country's telecom sector.

On Monday, Televisa confirmed that it would be paying a total of $1.44 Billion, or nearly 50% of its current cash position, for a 30% stake in Nextel Mexico, which is a division of NII Holdings.

Televisa's Executive Vice President, Alfonso de Angoitia said that the deal is still subject to the companies' joint bid for wireless capacity.

"The consolidation of companies via alliances, mergers, acquisitions will continue. I just think this is just one step toward that", he said.

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