Argentina halts Telecom's acquisition of Telefonica unit

Argentina's government has suspended Telecom's purchase of Telefonica's local unit. The presidential office announced this decision on Friday, stating that the merger may create excessive market concentration. Telefonica, a Spanish telecom company, agreed to sell its unit in Argentina to Telecom for $1.245 billion. This sale is part of Telefonica's plan to lessen its involvement in Latin America. President Javier Milei's administration has promised to prevent monopolies in the market. The suspension will stay in effect while further analysis is conducted. This move came after the National Commission for the Defense of Competition raised concerns about the merger's impact on market fairness. Telecom Argentina, which has ties to the Clarin Group, plans to keep investing in the country's telecom infrastructure. They are particularly focused on expanding 5G and fiber optic networks.