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El Salvador’s Regulator rejects plan by Digicel to sell its business to Claro

A plan by Digicel to sell its business in El Salvador to Claro has again been rejected by that country's regulator.

The regulator said a technical, legal and economic analysis showed a merger would likely have an adverse effect on competition and the welfare of consumers in the fixed and mobile telephony markets in El Salvador.

Digicel says it's examining the 129-page ruling.

This is the second time the deal has been rejected in the past 18 months.

The transaction dates back to March last year when Digicel agreed to acquire Claro's business in Jamaica and sell its businesses in El Salvador and Honduras to the Mexican company.

The Jamaican and Honduran legs of the deal have already been completed.



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