Oi, the Brazilian telecommunications company, formerly known as Telemar, is at an advanced stage of negotiations to take over Brasil Telecom, a move that would create a national champion in an already concentrated industry. A deal, expected to be worth R$4.8bn (US$2.7bn), would also reduce the possibility of Brazil’s telecommunications industry being dominated by a foreign-owned duopoly.  Telefónica of Spain and Mexico’s main fixed-line and mobile phone operators, Telmex and América Móvil, are the biggest players. The two Mexican groups, which operate as Embratel and Claro in Brazil, are owned by Carlos Slim, the world’s richest man. Brazil’s government has long feared that the two domestic companies are no match for the financially superior, more aggressive Spanish and Mexican duo.

This entry was posted by Gwen Robinson on Friday, January 11th, 2008 at 5:24 and is filed under Capital markets, M&A. Tagged with Brasil Telecom, Oi. Edit this entry.