The Brazilian National Telecommunications Agency (Agencia Nacional de Telecomunicacoes, or "Anatel") has approved the transfer of control of the Brazilian cable operator Net Servicos de Comunicacao S.A to America Movil. America Movil already owns the lion's share of the company, but has just 49 percent of voting power.
The authorization means America Movil’s Brazilian subsidiary, Embratel Participacoes S.A., will be allowed to buy the controlling shares of net from Globo Comunicacao e Participacoes S.A.
Net has 90 days to devise a way to eliminate Globo's board seats and veto rights, Rodrigo Zerbone, an Anatel board member, said in a meeting, Bloomberg reported.
The decision lets America Movil continue to combine its mobile-phone, landline, Internet and video businesses in Brazil, its second-largest market after Mexico.
Globo made an agreement with America Movil to transfer control after Brazil's government passed a law allowing foreign control of cable carriers, which would ban broadcasters from exercising control over communications companies and thereby requiring Globo's powers in the company to be eliminated, Bloomberg said.
