Liberty Latin America has abandoned its approach for Millicom International Cellular after it reportedly failed to secure enough support from its rival’s management.
Liberty said in a statement that it “has terminated conversations with Millicom . . . regarding a potential transaction. The Company remains focused on its growth strategy to deliver value for shareholders and provide market leading products and services to its customers.”
The news last week of a possible merger would have concentrated Costa Rica’s cable television, IP telephony, and cellular phone market in the hands of a few.
The merger, if it had occurred, though global, would have required the approval of the Superintendencia de Telecomunicaciones (Sutel) – Costa Rica’s telecom regulator and the Comisión de Promoción de la Competencia (Coprocom) – competition commission since both companies operate locallly.
Liberty recently purchased of a major stake in Cabletica, while Millicoom operates in the country under the Tigo brand.