CADE, Brazil’s anti-trust regulator last week announced it had approved Oi’s acquisition of Brasil Telecom. The Dow Jones reported CADE approved the sale of Brasil Telecom to Oi without structural restrictions, and a statement of commitment to performance was executed. In a statement, Oi said it had gotten the green light from the regulator, with the exemption of earlier structural restrictions.

The deal dates back two years ago, when Oi acquired control of rival telecom operator Brasil Telecom as early as 2008 in a deal that was worth 10 billion Brazilian reais, about US$5.91 billion. However, the full integration of the two has yet to be completed. Tele Norte Leste Participacoes or Oi is the largest local phone company in Brazil.

Rio de Janeiro-based Oi, Brazil’s largest fixed-lined carrier suspended the swap investment plan, part of its 2008 takeover offer for Brasil Telecom, on Jan. 15 after unveiling unexpected lawsuit losses at Brasil Telecom. However, new swap ratios were later revealed, igniting concern that holders of Brasil Telecom common shares could be hurt more than holders of its preferred stock.

The acquisition has thus been protracted, amidst such challenges for the last two years and its conclusion comes as a relief to Oi. The new swap offer had been feared to ignite fresh concerns amongst shareholders as Oi sought to conclude the deal. However, the firm did get approval from shareholders finally.

Over the past one year, Brasil Telecom’s preferred shares have dropped 71 per cent and its common shares have fallen 12 per cent, compared with a rise of about 70 per cent in the benchmark Bovespa stock index in Sao Paulo.

Oi will offer 0.3955 common shares of Telemar for each common share of Brasil Telecom, down 10 percent from 0.4388, the firm’s filing said.

Brasil Telecom S.A. is a major Brazilian telecommunications company headquartered in the Brazilian capital Brasilia. The company is one of three land lines, one long distance and eight mobile telephone companies in Brazil that emerged from the break-up of Telebrás.

Originally the company was called Tele Centro Sul, because its service covered the states in the central and southern parts of Brasil, such as Acre, Rondônia, Goiás, Tocantins, Mato Grosso, Mato Grosso do Sul, Paraná, Santa Catarina and Rio Grande do Sul, as well as the Distrito Federal. The firm has been a subsidiary of Oi since January 9th, 2009.