Cade approves Claro's R$ 4 billion acquisition of Desktop

The Administrative Council for Economic Defense (Cade) has approved Claro’s acquisition of Desktop for R$ 4 billion without restrictions. The decision clears the way for the transaction, which involves the purchase of 73% of Desktop’s ordinary shares, including R$ 2.4 billion in assets and the assumption of R$ 1.6 billion in net debt.

While the antitrust body identified overlaps in the fixed broadband market across 198 municipalities, it concluded that the risk of unilateral market power is low. The regulator noted that existing network infrastructure and the presence of both local and national competitors are sufficient to maintain market contestability and rivalry.

The acquisition is a strategic move for Claro to strengthen its position in the state of São Paulo, where it is currently competing with Vivo for broadband leadership. Desktop serves approximately 1.2 million customers in the region. Following this approval, Claro is expected to launch an offer to acquire the remaining 27% of shares to delist the company from the stock exchange.