Millicom close to losing Telecable buyout in Costa Rica


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Juan Fernandez Gonzalez

| 13 April 2016




Millicom is experiencing a setback in Costa Rica, with the country’s Tribunal Contencioso Administrativo backing the market authority’s ruling against the buyout of Telecable.


tigo logoAlthough the judgment is not yet final, the fact that the tribunal is supporting Superintendencia de Telecomunicaciones’ (SUTEL) decision means Millicom doesn’t have much of a chance to carry out the acquisition of the pay-TV operator. However Millicom intends to continue the process until the tribunal’s decision is definite.

Costa Rica’s Superintendencia de Telecomunicaciones (SUTEL) stopped the merger process about a year ago, when Millicom’s Tigo and Telecable had already agreed the terms of the deal.

Immediately after, the Swedish telco decided to bring a lawsuit against SUTEL to annul its decision and get permission to continue with the merger.

“The judgment is not final yet, but the Tribunal Contencioso Administrativo backs SUTEL’s analysis and criteria, as it is the market’s competition authority,” said Maryleana Méndez, president, SUTEL.

The watchdog based its initial decision on the high market concentration that would result from a successful merger. Indeed, Millicom’s Tigo owns nearly 40% of Costa Rica’s pay-TV market, while Telecable has over a 10% share.