Mexican telecommunications companies Axtel SAB and Alestra have merged
operations in a deal which closed on February 15. According to
deal counsel, it represents the combined
companies’ bid to compete, through new-found size,
in Mexico’s liberalising telecoms market.
The two companies are based in Monterrey, an hour and a half
from the US border. Axtel focuses on fixed-line services, such
as internet, TV and landlines. Alestra is more
corporate and consultancy-focused.
"This merger is something that had been rumoured for quite a
long time, because both companies were at a prime size for it,"
said Joy Gallup, partner at
Paul Hastings, who advised on the deal. "But it
couldn’t have been done without those
The Mexican Congress passed legislation for
telecommunications reform in 2014 in a key part of the
liberalisation of Mexico’s economy. That trend has
been evident for several years, but is now...