LatAm Telcos Consolidation Lessons: Case Study on Guatemala Mobile, 2019

Research evidence excerpt

LatAm Telcos Consolidation Lessons: Case Study on Guatemala Mobile, 2019

J P M O R G A N Latin America Equity Research

02 July 2026

LatAm Telcos

Consolidation Lessons: Case Study on Guatemala

Mobile, 2019

This is the third edition of a series of Latin America Consolidation Lessons, this LatAm Technology & Telecom /

time around assessing the Guatemalan mobile consolidation in 2019, when the Education

country turned into a two-player market dominated by AMX and Tigo. Our goal Marcelo Santos, CFA AC

with this series of reports is to equip investors with a repertoire of case studies to (55-11) 4950-3708

support the analysis of consolidations happening currently in countries such as marcelo.p.santos@jpmorgan.com

Argentina (exposure via OW-rated TEO) and Colombia (which can be played via Livea Mizobata

OW-rated Tigo). (55-11) 4950-3604

livea.mizobata@jpmorgan.com

• A brief summary of the consolidation. In January 2019, Telefonica (link) Banco J.P. Morgan S.A.

announced the sale of its operations in both Guatemala and El Salvador to

AMX. The transaction allowed a consolidation in the Guatemalan market (El

See our report on Brazilian consolidation

Salvador was not concluded), taking the number of mobile players from three

(here) and on Panama consolidation to two. By absorbing Telefonica , the 3rd largest operator, AMX established a

(here). more balanced playing field with Tigo, the market leader.

• Valuation at a significant premium for consolidation. The acquisition was

announced at a joint valuation of US$648m (US$333m for Guatemala and US

$315m for El Salvador) or 9.7x EV/EBITDA, a significant premium to AMX’s

then multiple at ~5.5x. As discussed in previous editions, buyers pay a rich

valuation premium for consolidation.

• No antitrust, no remedies.