After the rejection of América Móvil's offer for Telefónica's Chilean operations, the Mexican company plans to increase investments in the country to strengthen its market presence.
Following the announcement that French holding company NJJ and Millicom will acquire Telefónica’s operations in Chile for $1.2 billion, sidelining América Móvil's bid, the Mexican telecommunications giant has outlined its strategy to bolster its investment in the South American market. Carlos García Moreno, the company’s CFO, stated during a conference with investors that América Móvil anticipates capital investments (Capex) to reach approximately 15% of its total revenue for the year.
This investment could total around $7 billion in its international operations, with a specified portion intended to reinforce the company's growth in the Chilean market. García Moreno emphasized their commitment to achieving a capital expenditure target between 14% and 15%, indicating robust confidence in their operational strategy despite the competitive challenges.
As the telecommunications landscape in Chile evolves following this significant acquisition change, América Móvil's response reflects its determination to maintain and grow its market presence through substantial financial commitments. This proactive investment approach could potentially reshape competitive dynamics in the region and underlines the ongoing rivalry and strategic maneuvers within the telecommunications industry across Latin America.
