AT&T has announced that it will be purchasing Nextel Mexico in an acquisition deal worth $1.875 billion, less any outstanding debts owed by Nextel Mexico.
The deal will give AT&T Inc. companies that operate under the name Nextel Mexico and hold all the wireless properties in Mexico held by NII Holdings Inc. Once the acquisition is complete, the U.S. carrier intends to bring faster mobile internet to Mexico.
The company plans to achieve this by combining Nextel Mexico with Lusacell to quickly improve and expand its mobile internet service to benefit its millions of Mexican subscribers. The expansion will also benefit those who resides outside of the metropolitan areas.
The acquisition is subject to a bankruptcy auction and approvals by the U.S. Bankruptcy Court for the southern district of New York, which oversees the restructuring of NII Holdings. The process must also be approved by Mexico’s telecom regulator IFT (Instituto Federal de Telecomunicaciones). The transaction is expected to become final close to mid-2015.