Telecom Argentina S.A. Completed Regulatory Filings with ENACOM and CNDC in Connection with the Acquisition of Telefónica Móviles Argentina

Rhea-AI Summary

Telecom Argentina (NYSE: TEO) has announced the completion of regulatory filings with ENACOM (Argentine Communications Entity) and CNDC (Argentine Antitrust Commission) regarding its acquisition of Telefónica Móviles Argentina S.A. This follows the initial announcement made on February 24, 2025.

The company, with a market capitalization of US$4,837.2 million as of March 6, 2025, is a leading telecommunications provider in Argentina offering fixed-line telephony, cellular, data transmission, pay TV, and Internet services. The company also operates in Paraguay and Uruguay, providing mobile, broadband, and satellite TV services.

Positive

• Strategic expansion through acquisition of Telefónica Móviles Argentina
• Strong market presence across Argentina, Paraguay, and Uruguay
• Diversified telecom services portfolio

Negative

• Regulatory approval pending from ENACOM and CNDC
• Exposure to currency risks in Argentina, Paraguay, and Uruguay
• Potential integration challenges and costs

Insights

Telecommunications Regulatory Expert

Telecom Argentina's completion of regulatory filings with ENACOM and CNDC represents a procedural milestone in their acquisition of Telefónica Móviles Argentina announced last month. This filing is significant as it initiates formal regulatory review by both Argentina's communications authority and antitrust commission.

The acquisition has substantial market implications as it would combine two major telecommunications players in Argentina. Telefónica Móviles is a significant mobile operator in the country, and this acquisition would likely strengthen Telecom Argentina's position in the mobile segment, complementing its existing portfolio of fixed-line, broadband, and pay TV services.

The dual regulatory review process signals potential competitive concerns that authorities might raise. Telecom Argentina already holds substantial market share across multiple telecommunications segments, and acquiring another major provider could trigger scrutiny regarding market concentration and consumer impact.

While this development confirms the transaction is progressing, substantial regulatory uncertainty remains. Argentine regulators must evaluate whether the combination would harm competition or consumer interests. The timeline for approval remains unclear, and conditions could be imposed that affect the economic value of the transaction.

Without financial details on the acquisition price or expected synergies, investors have information to assess the potential value creation. The transaction's completion ultimately depends on regulatory approval, which is not guaranteed given Argentina's changing regulatory landscape.

M&A Financial Analyst

This regulatory filing represents an expected procedural step in Telecom Argentina's acquisition process, following their February 24th announcement of the Telefónica Móviles Argentina deal. The filing with both ENACOM and CNDC is mandatory under Argentine telecommunications and competition law before the transaction can proceed.

Strategically, this acquisition aligns with telecom industry consolidation trends across Latin America, where operators are seeking scale and service diversification. By acquiring Telefónica Móviles, Telecom Argentina would significantly expand its mobile customer base and potentially realize operational synergies through network integration and overhead reduction.

From a competitive standpoint, this would represent substantial market concentration in Argentina's telecommunications sector. Telecom Argentina already offers a comprehensive service bundle including fixed-line, cellular, data, pay TV and internet services. Adding Telefónica's mobile assets would potentially strengthen its integrated ecosystem approach and enhance cross-selling opportunities.

However, this increased concentration also raises the likelihood of regulatory intervention. The CNDC in particular may impose conditions such as spectrum divestiture, network sharing requirements, or consumer protection measures to mitigate competitive concerns. These conditions could materially impact the economics of the deal.

The lack of financial disclosure regarding purchase price, funding structure, or expected synergies makes it impossible to evaluate the transaction's financial merits. Investors should monitor upcoming regulatory decisions closely, as they will determine whether this acquisition ultimately creates or destroys shareholder value.

Market Cap (NYSE: TEO): US$4,837.2 million*
March 7, 2025

BUENOS AIRES, AR / ACCESS Newswire / March 7, 2025 / Telecom Argentina S.A. (NYSE:TEO)(BYMA:TECO2), ("Telecom Argentina" or the "Company"), announces that today it has completed the filing of the required information with the Ente Nacional de Comunicaciones (ENACOM or Argentine Communications Entity) and to the Comisión Nacional de Defensa de la Competencia (CNDC or Argentine Antitrust Commission), in compliance with applicable regulations, in connection with the acquisition of Telefónica Móviles Argentina S.A., as announced on February 24, 2025.

For further information, please contact the following Investor Relations representatives:

Luis Fernando Rial Ubago		Tomás Pellicori		Livio Gentile
lfrialubago@teco.com.ar		tlpellicori@teco.com.ar		lagentile@teco.com.ar

*Market Cap as of March 6, 2025

* * * * *

Telecom Argentina is a leading telecommunications company in Argentina, where it offers, either itself or through its controlled subsidiaries local and long distance fixed-line telephony, cellular, data transmission, and pay TV and Internet services, among other services. Additionally, Telecom Argentina offers mobile, broadband and satellite TV services in Paraguay and pay TV services in Uruguay. The Company commenced operations on November 8, 1990, upon the Argentine government's transfer of the telecommunications system in the northern region of Argentina.

As of December 31, 2024, Telecom Argentina owns 2,153,688,011 issued and outstanding shares.

*Trustees: Hector Horacio Magnetto and David Manuel Martínez Guzmán

For more information, please contact Investor Relations:

Luis Fernando Rial Ubago		Tomás Pellicori		Livio Gentile
lfrialubago@teco.com.ar		tlpellicori@teco.com.ar		lagentile@teco.com.ar

For information about Telecom Argentina's services, visit:
www.telecom.com.ar
www.personal.com.ar
www.personal.com.py

Disclaimer
This document may contain statements that could constitute forward-looking statements, including, but not limited to (i) the Company's expectations for its future performance, revenues, income, earnings per share, capital expenditures, dividends, liquidity and capital structure; (ii) the continued synergies expected from the merger between the Company and Cablevisión S.A. (or the Merger); (iii) the implementation of the Company's business strategy; (iv) the changing dynamics and growth in the telecommunications and cable markets in Argentina, Paraguay, Uruguay and the United States; (v) the Company's outlook for new and enhanced technologies; (vi) the effects of operating in a competitive environment; (vii) the industry conditions; (viii) the outcome of certain legal proceedings; and (ix) regulatory and legal developments. Forward-looking statements may be identified by words such as "anticipate," "believe," "estimate," "expect," "intend," "plan," "project," "will," "may" and "should" or other similar expressions. Forward-looking statements are not guarantees of future performance and involve certain risks and uncertainties that are difficult to predict. In addition, certain forward-looking statements are based upon assumptions as to future events that may not prove to be accurate. Many factors could cause actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements that may be expressed or implied by forward-looking statements. These factors include, among others: (i) the Company's ability to successfully implement our business strategy and to achieve synergies resulting from the Merger; (ii) the Company's ability to introduce new products and services that enable business growth; (iii) uncertainties relating to political and economic conditions in Argentina, Paraguay, Uruguay and the United States, including the policies of the new government in Argentina; (iv) the impact of political developments, including the policies of the new government in Argentina, on the demand for securities of Argentine companies; (v) inflation, the devaluation of the peso, the Guaraní and the Uruguayan peso and exchange rate risks in Argentina, Paraguay and Uruguay; (vi) restrictions on the ability to exchange Argentine or Uruguayan pesos or Paraguayan guaraníes into foreign currencies and transfer funds abroad; (vii) the impact of currency and exchange measures or restrictions on our ability to access the international markets and our ability to repay our dollar-denominated indebtedness; (viii) the creditworthiness of our actual or potential customers; (ix) the nationalization, expropriation and/or increased government intervention in companies; (x) technological changes; (xi) the impact of legal or regulatory matters, changes in the interpretation of current or future regulations or reform and changes in the legal or regulatory environment in which the Company operates, including regulatory developments such as sanctions regimes in other jurisdictions (e.g., the United States) which impact on the Company's suppliers; (xii) the effects of increased competition; (xiii) reliance on content produced by third parties; (xiv) increasing cost of the Company's supplies; (xv) inability to finance on reasonable terms capital expenditures required to remain competitive; (xvi) fluctuations, whether seasonal or in response to adverse macro-economic developments, in the demand for advertising; (xvii) the Company's ability to compete and develop our business in the future; (xviii) the impact of increased national or international restrictions on the transfer or use of telecommunications technology; and (xix) the impact of the outbreak of COVID-19 on the global economy and specifically on the economies of the countries in which we operate, as well as on our operations and financial performance. Many of these factors are macroeconomic and regulatory in nature and therefore beyond the control of the Company's management. Should one or more of these risks or uncertainties materialize, or underlying assumptions prove incorrect, actual results may vary materially from those described herein as anticipated, believed, estimated, expected, intended, planned or projected. The Company does not intend and does not assume any obligation to update the forward-looking statements contained in this document. These forward-looking statements are based upon a number of assumptions and other important factors that could cause our actual results, performance or achievements to differ materially from our future results, performance or achievements expressed or implied by such forward-looking statements. Readers are encouraged to consult the Company's Annual Report on Form 20-F and the periodic filings made on Form 6-K, which are periodically filed with or furnished to the United States Securities and Exchange Commission, as well as the presentations periodically filed before the Argentine Securities and Exchange Commission (Comisión Nacional de Valores) and the Buenos Aires Stock Exchange (Bolsas y Mercados Argentinos), for further information concerning risks and uncertainties faced by the Company.

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Contacts:
Luis Fernando Rial Ubago - lfrialubago@teco.com.ar
Tomás Pellicori - tlpellicori@teco.com.ar

SOURCE: Telecom Argentina S.A.

View the original press release on ACCESS Newswire

FAQ

What regulatory approvals has Telecom Argentina (TEO) filed for the Telefónica Móviles acquisition?

TEO has completed regulatory filings with ENACOM (Argentine Communications Entity) and CNDC (Argentine Antitrust Commission) for the acquisition.

When was the Telefónica Móviles acquisition initially announced by TEO?

The acquisition was initially announced on February 24, 2025.

What is Telecom Argentina's (TEO) current market capitalization?

TEO's market capitalization is US$4,837.2 million as of March 6, 2025.

How many shares does Telecom Argentina (TEO) have outstanding?

TEO has 2,153,688,011 issued and outstanding shares as of December 31, 2024.