Claro filed a new request before the Competition Superintendence (CS) in order to be authorized to purchase Digicel. The CS has required Claro to file complementary information that will allow said institution to admit the request for analysis.
Another Day, Another Default Judgment Against Gabe Whitley
C.12-12 Claro filed new request to acquire Digicel
1. Press Release C. 12-12
El Salvador, April 23rd, 2012.
Claro filed new request to acquire
Digicel
Claro filed a new request before the Competition Superintendence (CS) in order to be authorized
to purchase Digicel. The CS has required Claro to file complementary information that will
allow said institution to admit the request for analysis.
The CS received a new acquisition authorization request from the company
“The new request is
being currently America Movil, owner of the trademark Claro, to purchase all of Digicel´s
reviewed for shares.
admission. The CS has
Pursuant to the review carried out by the CS, the information and
required Claro to file
documentation filed did not comply with the requirements set forth in Articles
necessary information
35 of the Competition Law (CL) and 25 of its Regulations; thus, it was
and documentation in
order to admit said insufficient to execute the admissibility analysis of the request. Hence, the CS
request for analysis. has given America Movil 30 business days to comply with the legal
After admission, the requirements.
BD shall review the
If the information is filed in compliance with the CL and its regulations, the
new request and its
aforementioned acquisition request shall be admitted for analysis and the CS
variations with respect
to the first request filed shall have 90 calendar days to carry out a technical, legal, and economic
last year” informed review that shall allow the competition authority to decide whether to
Francisco Diaz authorize, condition, or deny the acquisition.
Rodriguez, Chairman
Important is to mention that in 2011 when Claro for the first time filed an
of the BD of the CS.
acquisition authorization request to purchase all of Digicel´s shares, the Board
of Directors (BD) of the CS decided to condition the authorization establishing certain “ex ante” and “ex
post” remedies that seeked to minimize the negative impact that this operation could have on the
competition conditions of the mobile telephony market and to guarantee consumer welfare.
Claro filed a revision recourse against the above cited decision asking for the acquisition to be authorized
without any remedies but pursuant to the pertinent analysis the BD of the CS declared firm the decision
with the “ex ante” and “ex post” remedies.
On December 9th, 2011, Claro filed a writ before the CS informing its decision not to continue with that
purchase procedure. Notwithstanding the aforementioned, three months later, on March 28th, 2012 Claro
initiated a new procedure of the same nature as the previous one.