Telefónica SA is preparing to withdraw from the Chilean market as part of its ongoing strategic retreat from select Latin American countries. According to Spanish media outlet El Confidencial, the company has hired Citi as an adviser to oversee the divestment of its operations in Chile.
The sale process marks the latest step in Telefónica’s broader restructuring plan, under which the company has been gradually exiting markets with insufficient returns relative to capital cost. Market sources cited by El Confidencial expect Telefónica to book a capital loss from the sale, reflecting the company’s readiness to absorb financial setbacks in exchange for long-term strategic clarity.
Telefónica has maintained a significant presence in Chile since the early 1990s, when it entered the country during a wave of privatizations that opened Latin American telecommunications markets to foreign investors. Over the years, the Chilean unit has played an important role in Telefónica’s regional footprint. However, sustained competitive pressures, regulatory challenges, and modest profit margins have weakened the case for continued investment.
The divestment aligns with the company’s renewed focus on four priority markets: Spain, Brazil, the United Kingdom, and Germany. It follows the recent sale of Telefónica’s operations in Peru and the announced $1.25 billion sale of its Argentine business—though the latter is currently under regulatory review.
This Chilean exit further highlights Telefónica’s gradual consolidation in Latin America, where it has also been exploring strategic alternatives for its units in Mexico and Colombia. The company’s Executive Chairman, Marc Murtra—appointed in January 2025—has signaled support for concentrating resources in fewer, higher-performing markets.
Telefónica has yet to release an official statement regarding the Chile transaction, and neither Citi nor local regulatory authorities have commented on the matter.
