Telefónica buys GVT to reinforce position in Brazil
Juan Fernandez Gonzalez
| 19 September 2014
Telefónica has announced that it has purchased Brazil's GVT, beating Telecom Italia and strengthening its position in the Brazilian pay-TV and mobile sectors.
gvtThe agreement comes after 20 days of negotiations between the Spanish telco and GVT, as Telecom Italia was beaten out of the process when Telefónica offered almost €0.5 billion for the Brazilian company.
Telefónica's offer was €7.45 billion, although only €4.6 billion of that will be paid in cash. Vivendi, the current owner of GVT, will also get 12% in Telefónica Brasil after GVT's sale and €1.1 billion in Telecom Italia shares, representing 8.3% of the Italian telco.
The deal is worth a total of about €4.7 billion, according to Telefónica, and will consolidate its leadership position in Brazil. GVT has a fibre network throughout the country with 10.4 million connected homes through which it offers Internet and pay-TV services.
The deal will now be analysed by the regional and national telecom and competition authorities.