Telefónica has reached an agreement to sell its Mexican telecommunications business as part of its ongoing strategy to reduce its presence in Latin America.
In a statement to the market, the Spanish telecom group announced that its wholly owned subsidiary Telefónica Hispanoamérica, S.A. has signed an agreement to sell 100% of the shares of Pegaso PCS, S.A. de C.V. and Celular de Telefonía, S.A. de C.V., which together operate as Telefónica México.
The buyer is Melisa Acquisition, LLC, a consortium led by OXIO Inc. and Newfoundland Capital Management.
Deal value and structure
According to Telefónica, the transaction assigns a firm enterprise value of $450 million (approximately €389 million at current exchange rates) to the Mexican operations. The final price will be subject to customary adjustments typical for transactions of this kind, including changes in working capital or debt levels at closing.
The sale includes all shares held directly and indirectly by Telefónica in the Mexican subsidiaries, representing full ownership of the business.
Completion of the deal remains conditional on regulatory approvals and other agreed closing conditions between the buyer and seller.
Strategic exit from the region
Telefónica said the transaction forms part of its asset portfolio management policy and aligns with its broader strategy to scale back its footprint in Hispanoamérica.
Over the past several years, the company has been progressively divesting or restructuring assets across Latin America in order to focus resources on its core markets in Spain, the United Kingdom, Germany and Brazil.
The potential sale of Telefónica México would represent another step in that strategy, following previous disposals in countries such as Costa Rica, Nicaragua, Panama, Guatemala and El Salvador.
Market implications
Telefónica has operated in Mexico under the Movistar brand, competing with major telecommunications providers including América Móvil’s Telcel and AT&T Mexico.
The entry of a consortium led by OXIO, which operates mobile network-as-a-service infrastructure, may signal a shift toward new wholesale or digital-focused telecom models in the Mexican market.
For Telefónica, the deal reflects the group’s continued effort to streamline its international operations and strengthen its balance sheet through targeted asset sales.
The company confirmed that the agreement remains subject to regulatory clearance before it can be completed.
