América Móvil has announced plans to increase its stake in ClaroVTR to 91 percent.

The telco currently owns a 50 percent stake in the Chilean telco as part of a 50:50 joint venture (JV) with Liberty Latin America (LLA).

In a statement, América Móvil said that should the deal get the regulatory green light, ClaroVTR will be integrated within its existing operations in Chile.

The telco noted that the JV runs on funding based on convertible notes to operate the business.

As part of the agreement, LLA had the right “to catch up” to its respective portion of financial commitments by the middle of this year to retain a 50:50 ownership but has decided not to do so, allowing América Móvil to snap up a controlling stake.

LLA will hold the remaining nine percent of the company. Closing of the conversion is expected during the third quarter of this year.

“We are excited about the prospects of ClaroVTR. Our strong partnership with Liberty Latin America helped establish a converged connectivity provider that serves customers with world-class products and services. We look forward to the prospects of this business,” said Daniel Hajj, CEO of América Móvil.

“We are confident that this is the right next step for ClaroVTR and in the best interests of Liberty Latin America’s shareholders," added Balan Nair, CEO of Liberty Latin America. "América Móvil is a great partner and ClaroVTR has a strong management team in place to lead the business. We have been proud investors in Chile for decades, and while today’s market dynamics are challenging, the long-term outlook is bright.”

The joint venture was given the go-ahead back in 2022, combining VTR Communications and Claro Chile, and offers fixed and mobile services such as Internet, pay television, and text messages.