America Movil restructures Chile business after Liberty Latin America buy-out

America Movil (AMXB.MX) has announced a restructuring of its Chilean operations, taking full control of its ClaroVTR joint venture by exercising a call option to acquire the remaining shares from Liberty Latin America (LILA.O). This move consolidates America Movil's 100% ownership of ClaroVTR, which was formed in 2021 by merging Claro Chile and Liberty's VTR, thereby streamlining its operational structure and strengthening its strategic position within the Chilean telecommunications market.

Analysis

America Movil (AMX) has completed the full acquisition of its Chilean joint venture, ClaroVTR, by exercising a call option to purchase the remaining stake from Liberty Latin America (LILA). This transaction finalizes the consolidation of an entity formed in 2021, of which AMX already held a 91% stake. The move is strategically significant as it grants AMX complete operational and strategic control over its Chilean business, removing the complexities inherent in a joint venture structure. Following the buyout, America Movil has announced its intention to overhaul its operations in Chile. This development, which carries a slightly positive sentiment for AMX, positions the company to directly implement its strategy in a competitive market, with the potential to unlock greater efficiencies and synergies. The deal concludes LILA's participation in the venture.

Key Decisions for Investors

• Investors in America Movil should view this full consolidation as a strategic positive that simplifies its structure, but should now focus on the execution risk and potential synergies of the announced operational overhaul in Chile.
• The key catalyst to monitor will be the details of the restructuring plan for ClaroVTR, as its successful implementation will determine the long-term value creation from this acquisition.
• For Liberty Latin America investors, the sale represents a finalized exit from the Chilean joint venture, a largely neutral event that allows management to redeploy capital and focus on other core assets.