America Movil to divest Mexican assets, renounce Dish Mexico rights

|About: America Movil SA de CV (AMX)|By:, SA News Editor

With regulatory pressure mounting, America Movil (AMX) plans to divest some Mexican assets into a new independent company. The company also plans to split its wireless towers from the rest of its Mexican business, and renounce its rights to acquire control of satellite TV provider Dish Mexico.

AMX notes its plans require the approval of regulators, and perhaps also shareholders.

The move comes as Mexico's lower house approves a fresh telecom reform bill that would impose stiff penalties on AMX if it kept its combined wireline/mobile market share remained above 50%. A bill passed last year created a new telecom regulator.

AMX +1.3% AH.