- Desktop confirms talks with Claro for a potential acquisition.
- Claro’s parent company, America Movil, has yet to make an official comment.
What happened: Desktop confirms acquisition talks with Claro
Brazil’s Desktop, a provider specialising in fibre optic internet services, confirmed that it had held preliminary discussions with telecom operator Claro, following reports that Claro was in talks to acquire the company. The confirmation came in a filing with the Brazilian securities market.
While no binding agreement has been reached regarding price, structure, or key terms, the company noted that these talks are non-binding at this stage. The news follows a report by Brazil Journal, which claimed that Claro was in “advanced talks” for a full acquisition of Desktop, which could see the company go private under Claro’s ownership.
The report also suggested that Claro was in the process of conducting due diligence, though a formal offer had yet to be made. This news sent Desktop’s stock price soaring by 16% in early trading on Tuesday, before it settled at a 10% increase by the end of the day. In contrast, Brazil’s benchmark Bovespa index fell by 1.6%.
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Why it’s important
The potential acquisition of Desktop by Claro, which is owned by Mexican telecommunications giant America Movil, marks another significant move in the Brazilian telecom sector. It is noteworthy that this is not the first time Desktop has been an acquisition target. In 2024, Telefonica Brasil, a competitor of Claro, also expressed interest in acquiring the company.
The talks are also important within the context of the broader Latin American telecommunications industry, where mergers and acquisitions have been a key trend as companies look to consolidate and expand their market presence. Claro’s acquisition of Desktop would allow it to strengthen its position in Brazil’s competitive fibre optic internet market.
Additionally, this development comes amid reports that America Movil and Chilean telecom firm Entel are considering a joint bid to acquire Telefonica’s operations in Chile, signalling further consolidation in the region’s telecom market.
