Oi-Brasil Telecom Merger To Go Ahead

May 2008 | M&A News Alert

After several months of speculation and rumour surrounding a proposed merger or take over of two of Brazil's telecoms operators, Oi has announced a deal to buy a controlling stake in rival Brasil Telecom. The company has said it expects regulatory approval for a change in the Telecommunications Law to take place within 240 days of the announcement of the acquisition. At present such a merger is prohibited as the operators compete in several markets. Oi is the larger of the two operators, reporting profits of BRL2.358bn (US$1.413bn) in 2007 compared with BRL671.3mn (US$402.3mn) recorded by Brasil

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