America Movil, JCDecaux to Merge Outdoor Advertising Assets
June 27 2017 - 11:11AM
Dow Jones News
By Anthony Harrup
MEXICO CITY -- Telecommunications heavyweight América Móvil SAB
and France's JCDecaux SA plan to merge their outdoor advertising
operations in Mexico in a joint-venture in which the French company
will own a majority stake.
América Móvil, Latin America's largest mobile phone company
controlled by billionaire Carlos Slim, will contribute Corporación
de Medios Integrales to the joint-venture, and JCDecaux will
contribute Eumex, which it acquired in 2014, and other
companies.
The deal needs antitrust clearance and is expected to close this
year. JCDecaux will own 60% of the joint-venture and América Móvil
40%, the companies said Tuesday.
América Móvil acquired outdoor publicity assets in 2013 at a
time when it had stopped advertising with Mexico's main television
broadcasters Grupo Televisa SAB and TV Azteca SAB in disputes over
phone interconnection and TV advertising rates. Mr. Slim's
companies have since resumed advertising with the broadcasters.
"This alliance is expected to accelerate further developments in
the second-largest advertising market in Latin America," JCDecaux
said in a release in which it estimated annual out-of-home
advertising in Mexico at $590 million, or 12% of total advertising
spending.
JCDecaux said the alliance will increase its geographic
presence, especially in the capital Mexico City, and add assets
such as bridges and shopping malls to its offerings which include
advertising on billboards, panels and buses.
Write to Anthony Harrup at anthony.harrup@wsj.com
(END) Dow Jones Newswires
June 27, 2017 11:56 ET (15:56 GMT)
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