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.
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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.
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(END) Dow Jones Newswires
June 27, 2017 11:56 ET (15:56 GMT)