The FINANCIAL — AT&T has completed its acquisition of companies operating under the name Nextel Mexico from NII Holdings, Inc., including spectrum licenses, network assets, retail stores and subscribers in Mexico, for $1.875 billion, less approximately $427 million of net debt and other adjustments.
Earlier this year, AT&T acquired Mexican wireless provider Iusacell. AT&T will integrate Iusacell and Nextel into one company focused on bringing more choices, better service and faster mobile Internet speeds to more locations throughout Mexico. AT&T plans to create the first-ever North American Mobile Service area, which will cover more than 400 million consumers and businesses in Mexico and the United States, according to AT&T.
Thaddeus Arroyo, Chief Executive Officer for AT&T Mexico, LLC and Iusacell, will lead the combined company.
Mexico is the second-largest economy in Latin America and has a growing middle class. This economic strength, combined with Mexico’s close geographic, economic and cultural ties to the U.S., make it an attractive place for AT&T to invest.
AT&T’s acquisition of Nextel Mexico was approved by the U.S. Bankruptcy Court for the Southern District of New York, which is overseeing the restructuring of NII Holdings. It was also approved by Mexico’s telecom regulator IFT (Instituto Federal de Telecomunicaciones). Swift action by IFT, aided by recent regulatory reform by the Mexican government, has created a positive climate for AT&T to invest significantly in Mexico.