Friday, October 08, 2010

Telmex acquires Embratel in Brazil

Embratel (Empresa Brasileira de Telecomunicacoes S.A.), the second major Brazilian telecommunications company, (owned by the Mexican telecommunications giant Telmex), has finally finished the acquisition of almost 70% of the preferential stock of NET SERVICIOS, for US$1970 millions.

Since Embratel already had 35.8% of the common stock of NET and 5.4% of the preferential stock, now it will have the absolute control of the company. NET will still be run by the GLOBO Group since Brazilian law does not allow for more than 49% ownership on any telecommunication company in the country. The complete transfer of ownership will be done once the law is modified which is currently being debated by the Brazilian Senate.

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