Telefónica completes GVT buy-out for €4.66BN

DetailsJuan Fernandez Gonzalez | 26 March 2015




After a long journey to get approval from the relevant authorities in Brazil, Telefónica has finally completed the acquisition of GVT from Vivendi, paying €4.66 billion cash plus a 12% share of Telefónica's Brazilian unit.


Brazil's antitrust authority, CADE, approved the operation a few hours ago, enabling the deal to go through. The green light follows authorisation from market regulator Anatel which was granted last December, and Telefónica's €3 billion capital increase reported last week.

Telefónica Brazil is now fully authorised to start the integration process of both companies, proposing to its board of directors the appointment of Amos Genish, current CEO of GVT, as new president and CEO of Telefónica Brasil. Antonio Carlos Valente, current chairman of Telefónica Brasil, will remain as non-executive chairman of the board of directors and will assume, in the near future, new responsibilities as representative of the group in Latin America.

The integration of GVT makes Telefónica the leading digital telco in the country. With over 100 million accesses, it becomes the second largest broadband operator and the third pay-TV provider in the country.

Vivendi has also accepted Telefónica's offer to acquire 1,110 million ordinary shares held by Telefónica in Telecom Italia.