Telefónica Brasil completed its acquisition of Global Village Telecom (GVT) from Vivendi, making it the largest operator in Brazil both in terms of clients—with over 105 million accesses after the integration —and revenues. The deal was first announced in September 2014.
Telefónica Brasil now has national coverage and is the leader in the mobile business and fixed ultra-broadband, while also strengthening its position in pay TV. Vivo has the largest national 3G network, with coverage in 3,200 Brazilian municipalities, as well as 4G (which covers more than 140 cities nationwide), while GVT has an extensive fibre optics network reaching 156 cities in 20 Brazilian states, besides the Federal District.
The purchase price included a total of 4,663 million euros (by means of cash settlement and debt assumption), as well as the handover of 12% of the share capital of the new Telefónica Brasil—resulting from the integration. In the coming weeks, Vivendi will exchange 4.5% of this interest for 8.3% of the ordinary shares of Telecom Italia, according to the terms agreed by the parties.
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