América Móvil (NYSE: AMX) and Telefónica SA (NYSE: TEF) have announced a non-binding agreement to explore the potential joint acquisition of assets from Santiago, Chile-based WOM SA and its affiliates. WOM SA is currently navigating a Chapter 11 reorganization in the United States Bankruptcy Court for the District of Delaware.
This agreement provides both telecom companies with the opportunity to consider submitting a joint offer for WOM SA’s assets. However, they retain the flexibility to exit the process at any point. Should they decide to proceed with an offer, they will need to adhere to the bidding procedures outlined in WOM SA’s reorganization plan. Additionally, the transaction will require various regulatory approvals, including authorization from the Chilean National Economic Prosecutor’s Office, due to WOM’s operations in Chile.
The potential acquisition must also comply with sector-specific regulations and competition laws, ensuring that the deal aligns with the necessary legal and market frameworks.
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