Cade Approves Claro’s Purchase of Broadband Provider Desktop

Brazil's antitrust regulator, the Cade, has given the green light for Claro to acquire a 73% stake in broadband provider Desktop. The deal, which closed on September 11, involves Claro paying roughly R$4 billion (US$778 million) in exchange for 84 million ordinary Desktop shares. Desktop is selling its network to Claro, a unit of Mexican group América Móvil, for R$2.4 billion (US$467 million) in cash and R$1.6 billion (US$311 million) in assumed debt.

The acquisition adds Desktop's wireline network to Claro's existing footprint in São Paulo state, where the two companies' overlapping areas could see market concentration above 50% once the deal is complete. Claro already dominates Brazil's postpaid and fiber broadband segments, though Vivo is the largest overall carrier. The Cade's technical staff deemed the market power concerns insufficient to block the transaction.

However, the approval is not final and requires a 15-day appeal window. Once finalized, Claro will need to offer the remaining 27% of Desktop shares on the B3 for investors to decide whether to sell or retain their minority stake. This acquisition is part of a trend of consolidation in Brazil's mid-sized internet providers, as rising fiber build-out costs force smaller players to sell out to national carriers.

Claro's Mexican parent, América Móvil, plans to pursue further deals, potentially extending its search to other Latin American markets. The approval sets a precedent for how much market overlap the Cade will allow in Brazil's broadband sector.