 Telmex has prospered in the Mexican market |
Carlos Slim, Latin America's richest man, has handed over control of Mexican telecoms giant Telmex to his son. The move is a key step in Mr Slim's strategy of gradually stepping back from his telecoms and retail empire, which reaches from the US to Argentina.
It comes at a crucial time for Telmex, which is on the verge of moving into the competitive Brazilian market.
A US judge this week allowed bankrupt US firm MCI to sell its Brazilian firm, Embratel, to Telmex.
Tough proposition
Mr Slim - whose fortune is estimated at $14bn - remains honorary life chairman of Telmex, but will be passing management to 37-year-old Carlos Slim Domit.
 Mr Slim will retain influence behind the scenes |
His control of the firm dates back to 1990, when he and his partners bought out the state-owned firm for $1.7bn. He has benefited from exceptionally forgiving regulatory treatment, which has left Telmex with a near-monopoly of long-distance calls in Mexico.
With the proceeds from its home market, Telmex has expanded into seven countries in the Americas. Among other deals, it bought the Latin American operations of US giant AT&T.
The $400m purchase of Embratel, Brazil's biggest long-distance operator, represents a strategic challenge, analysts say.
The Brazilian market is far more deregulated than Mexico, and is already thoroughly penetrated by local and foreign competition.
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