Mexican Regulators Approve AT&T Acquisition of Iusacell

AT&T is one step closer to locking up its bid for Mexican carrier Iusacell.

The Mexican Federal Competition Commission Monday said that it had approved AT&T’s $1.7 billion bid for the Iusacell. In all, AT&T has agreed to $2.5 billion, which includes Iusacell’s outstanding debt.

The deal was initially announced back in July (http://www.wirelessweek.com/news/2014/11/t-buying-mexico-wireless-provider-iusacell-25b) of this year. AT&T will pick up approximately 8.6 million Iusacell subscribers south of the border, as well as a network that covers nearly 70 percent of Mexico’s population.

Mexico’s FCC said that it had included conditions in its approval that would “avoid risks to the proces off competition” in markets where Iusacell competes with America Movil. Prior to announcing the deal AT&T had divested its minority stake in America Movil.

Iusacell’s Total Play pay TV and wireline broadband business will be spun out to Grupo Salinas before the acquisition closes.

Shares of AT&T were up slightly to $33.78 in early trading Monday.