AT&T’s acquisitions in Mexican wireless space
AT&T (T) recently gave guidance on its anticipated completion of the acquisition of NII Holdings’ Nextel Mexico, a Mexican wireless provider. AT&T also talked about its completed acquisition of Iusacell, another Mexican wireless provider, in 1Q15.
According to AT&T’s chief executive officer and chairman, Randall Stephenson, in the company’s 1Q15 earnings call on April 22, “We established a good foothold in the Mexican wireless market with our acquisition of Iusacell and we are on track to close our acquisition of Nextel’s Mexico operations shortly.”
AT&T–Nextel Mexico transaction
AT&T and NII Holdings signed the agreement for Nextel Mexico in January 2015. This is a $1.875 billion deal.
At the end of 2014, Nextel Mexico had ~2.9 million wireless subscribers. The Nextel Mexico segment generated annual revenue of ~$1.42 billion for NII Holdings in 2014. According to AT&T, the deal has the green light from the bankruptcy court.
AT&T bought Iusacell for ~$2.5 billion in 1Q15. According to AT&T, Iusacell had a wireless coverage of ~70% in Mexico as of January 16, 2015.
The deal was signed in November 2014. AT&T reported Iusacell’s results under its international segment category in 1Q15. Iusacell generated revenue of ~$236 million during the quarter. It had ~6 million subscribers at the end of 1Q15.
Instead of directly investing in the stock, you may take a diversified exposure to AT&T by investing in the Technology Select Sector SPDR Fund (XLK). The ETF held ~4.2% in the carrier as of March 31, 2015.