The Office of the Superintendent General cleared joint venture between Telefônica Brasil and Canadian pension fund

The Office of the Superintendent General of CADE cleared the joint venture between Telefônica Brasil and the pension fund Caisse de dépôt et placement du Québec (CDPQ), via FiBrasil, a firm that installs and operates fibre optic networks to provides services to telecommunications service providers. The decision was published in the Federal Official Gazette of Brazil on Tuesday, 6 April.

To complete the joint venture, CDPQ is to acquire 50% of the shares of FiBrasil, which is wholly owned by Telefônica. According to the applicants, the transaction will enable the Telefônica Group to develop and expand the business of FiBrasil, while allowing CDPQ to diversify its infrastructure portfolio, following its entry in the telecommunications sector in Brazil.

During the transaction review, the Office of the Superintendent-General did not identify potential competition issues in the sectors observed. Furthermore, it was observed the transaction may have pro-competitive effects, insofar as it represents a partial unbundling between the Telefônica Group and FiBrasil, related to the operation of fibre networks as infrastructure for telecommunications and wholesale services for other telecommunications service providers.

The transaction has yet to be cleared by both the competition authority of the European Union, since Telefônica Infra, which is part of the Telefônica Group, is from Spain, and by the Brazilian National Telecommunications Agency (Anatel).

Unless CADE's Tribunal requests the case for adjudication or an interested third party files an appeal within 15 days, the decision of the Office of the Superintendent General will be final, and the transaction will be considered cleared by the antitrust authority.

Access Administrative Proceedings 08700.001265/2021-82