America Movil Continues to Dominate Latin American Telecom

América Móvil holds a commanding position in several countries throughout Latin America. Political, regulatory, and economic uncertainty, coupled with occasional competitive flare-ups, limit its ability to exercise pricing power, but we expect Móvil’s scale and strong balance sheet to allow it to deliver steady results. The firm is now looking for new acquisition targets. We are wary that the firm will use its strong balance sheet to undertake a series of sizable transactions.