NEW YORK (TheStreet) -- Shares of AT&T (T) are up 0.42% to $33.68 in pre-market trade after it was reported that Mexico's competition regulator yesterday approved the company's $1.7 billion purchase of local cellphone company Iusacell, with unspecified conditions, a statement said, Reuters reports.
The Federal Competition Commission said it set conditions on the deal to "avoid risks to the process of competition" in markets where Iusacell would compete with Carlos Slim's America Movil (AMX) , which previously counted AT&T as a minority investor.
America Movil is Mexico's biggest mobile operator, while Iusacell is a distant third, Reuters said. AT&T sold its America Movil shares in the summer, before announcing its deal with Iusacell in November.
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Iusacell was previously being operated as a joint venture between Mexico's biggest broadcaster Televisa and Grupo Salinas, a holding company belonging to tycoon Ricardo Salinas, according to Reuters.
The competition watchdog also said in the statement it approved Televisa's sale of its 50% stake in Iusacell back to Grupo Salinas, from which AT&T will then buy the operator in its entirety.
Separately, TheStreet Ratings team rates AT&T INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate AT&T INC (T) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels, largely solid financial position with reasonable debt levels by most measures, notable return on equity and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income."