Telefonica recently sold its Argentine operation as part of its strategy to reduce its exposure in Latin America
Spanish telco Telefónica has finalized an agreement to sell 67.5% of its Colombian unit Coltel— which it operates under the Movistar brand — to Millicom for approximately €368 million euros ($400 million).
In addition to acquiring Telefónica’s stake, Millicom has also announced an offer to purchase the remaining 32.5% of Coltel, currently owned by the Colombian government and other investors. If successful, Millicom would gain full control of the company, expanding its footprint in the domestic telecom market.
“This transaction strengthens our presence in Colombia, and with this strategic move, Millicom reaffirms its ongoing commitment to expanding connectivity and coverage, accelerating digital transformation, and actively contributing to Colombia’s continued growth and competitiveness,” Millicom CEO Marcelo Benítez said in a statement.
The deal is part of Telefónica’s ongoing efforts to reduce its exposure in Latin America, a strategy that began in 2019 and has since led to multiple asset sales across the region. Earlier this year, the company announced the sale of its Argentine subsidiary to rival Telecom Argentina for $1.245 billion.
The acquisition of Telefonica Argentina by Telecom Argentina must now be reviewed by Argentina’s telecommunications services watchdog ENACOM and the National Commission for the Defense of Competition (CNDC). ENACOM has already stated that regulatory measures are in place to prevent monopolistic structures, emphasizing the importance of ensuring market competition.
The Argentine government also announced that it will investigate the acquisition to determine whether it creates a monopoly. The Office of the President had released a statement warning that “70% of telecommunications services would be controlled by a single economic group, creating a monopoly formed thanks to decades of state benefits.”
There have also been speculations about possible exits from Mexico and Uruguay, reinforcing Telefónica’s shift towards prioritizing its core markets: Spain, Germany, the U.K. and Brazil.
Despite these divestments, Telefónica’s Hispam division- which includes all of its Latin American operations except Brazil- remains a significant revenue generator. In 2024, the unit reported 9.032 billion euros in revenue, accounting for 22% of Telefónica’s total income and reflecting a 7.8% increase compared to 2023.
The transaction remains subject to regulatory approvals, as well as agreements with Colombia’s Ministry of Finance and Colombian utility firm EPM.
