The Spanish telecommunications group has now divested nearly €3.9 billion in Latin American assets as part of a broad restructuring strategy.
Telefónica has taken a step in its ongoing strategy to reduce exposure in Latin America by agreeing to sell its Ecuadorian subsidiary to Millicom for $380 million (€330 million). The deal, announced late Friday, marks another gol in Telefónica’s effort to streamline its portfolio and focus on key markets, particularly in Europe.
The agreement, pending regulatory approvals and standard closing conditions, will see Millicom acquire 100% of Telefónica’s operations in Ecuador, where the Spanish group currently serves five million mobile customers, representing a 28% market share—second to Claro (54%) and ahead of the state-owned CNT (18%). Given that Millicom has no existing commercial presence in Ecuador, the transaction is not expected to face significant antitrust hurdles.
In a statement submitted to the Comisión Nacional del Mercado de Valores (CNMV) and Ecuadorian regulatory authorities, Telefónica emphasized that the transaction is “part of Telefónica Group’s portfolio management policy and aligns with its strategy of reducing exposure to Latin America while focusing on key markets and sustainable value creation.”
With this deal, Telefónica has raised nearly €3.9 billion through asset sales across Latin America. Past transactions include divestments in Panama (€573 million), Nicaragua (€390 million), Costa Rica (€455 million), Guatemala (€293 million), El Salvador (€277 million), Uruguay (€389 million), and Argentina (€1.245 billion). The company also finalized the exit from Peru, transferring its operations to Grupo Integra for a symbolic €900,000, though that deal included liabilities of approximately €1.2 billion.
The only major transaction still pending is the full divestment of Telefónica’s Colombian unit. Nearly two years ago, the group agreed to sell a 67.5% stake in Colombia Telecomunicaciones (Coltel) to Millicom for €332 million, with an option to purchase the remaining 32.5%—a move that could raise total proceeds from the Colombian exit to around €440 million.
Millicom, operating under the brand name Tigo and headquartered in Luxembourg, has become a key player in Telefónica’s Latin American restructuring. The companies have a shared transaction history dating back to 2019, when Telefónica sold its Panama and Nicaragua subsidiaries to Millicom. While the original Costa Rica deal with Millicom was terminated due to unresolved disputes—ultimately leading Telefónica to sell the unit to Liberty Latin America for €455 million—Millicom has since expanded its footprint through acquisitions in Guatemala, El Salvador, and Uruguay.
Commenting on the Ecuador acquisition, Millicom CEO Marcelo Benítez stated: “This acquisition reflects our long-term confidence in Latin America and our commitment to purposeful, sustainable growth. Ecuador offers a dynamic and expanding digital market within a stable, dollarized economy, making it a natural fit for Millicom’s regional strategy.”
Millicom noted that the transaction strengthens its innovation platform and regional diversification, in line with its long-term growth objectives in South America.
As Telefónica continues its exit from the region, attention now turns to the group’s remaining operations in Mexico, Chile, and Venezuela. These assets are expected to be divested in the near future, as part of the broader restructuring led by Telefónica’s chairman Marc Murtra.
More than two decades after Telefónica’s €4.7 billion acquisition of ten Latin American operators from BellSouth in 2004, the company is now in the final stages of a strategic reversal—shifting focus away from volatile emerging markets toward more stable, high-value operations in Europe and other select geographies.
