Quebec’s Caisse, Telefonica in Talks on Brazilian Fiber Venture

Telefonica SA is in advanced talks with Canadian pension fund Caisse de Depot et Placement du Quebec to form a wholesale fiber-optic broadband operator in Brazil, according to people familiar with the matter.

Telefonica and CDPQ are in exclusive talks and a deal could be announced as soon as this week, said the people, who asked not to be identified because the matter is private. While talks are advanced, an agreement could still be delayed or fall apart, they said.

Telefonica Brasil, which is being advised by Banco Santander SA, announced late on Tuesday that it’s “in advanced negotiations with a leading international financial investor” to build a wholesale fiber network. The Brazilian unit and Telefonica Infra will split a 50% stake in the venture, while the partner will take the other half.

Read More: Vivo, Telefonica To Have 25% Each of FiBrasil, Partner 50%: CEO

The agreement is expected to be similar to Telefonica Infra’s local partnership in Germany with insurance firm Allianz SE. The company is seeking to lower investment costs, while keeping the option of selling network access to other operators.

Representatives for Telefonica and CDPQ declined to comment.

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