Portugal Telecom’s strategic partnership with Oi: The value creation potential

A Work Project, presented as part of the requirements for the Award of a Masters Degree in Management from the NOVA – School of Business and Economics

Portugal Telecom (PT) has been in the Brazilian Telecom Market for over a decade. After the end of the Joint-Venture with Telefónica, PT and Oi, a resident telecom player, decided to combine strengths in order to create value for both companies. The success of this partnership depends on the Brazilian operator’s performance, and which competitive advantages will be possible to achieve. Portugal Telecom will receive the return under the form of dividends, firm value increase, scale and geographic projection. The key point of the partnership is the management of the integration process as it will determine whether the expertise is transferred between companies. The project aims to analyze the motivations of the strategic partnership, the Brazilian Telecom Market, and the integration process, leading to withdrawal of final conclusions.