Telefónica has been gradually exiting most international markets since 2019, focusing instead on its core operations in Brazil, Germany, Spain and the UK
In sum – what to know:
Chile transaction – The operator is considering a bid for Telefónica Chile, though no formal offer or final decision has been made.
Telefónica exits – The potential sale fits Telefónica’s strategy of retreating from non-core markets to focus on Brazil, Germany, Spain and the UK.
Market structure – A Millicom acquisition would preserve Chile’s four-player mobile market, potentially easing regulatory scrutiny.
Millicom is weighing a possible bid for Telefónica’s Chilean operations, as the Spanish telecom group continues to scale back its presence in non-core markets, according to a Bloomberg report.
People familiar with the matter told Bloomberg that no final decision has been made and that Millicom has not yet submitted a formal offer for the Chilean carrier. Telefónica has been gradually exiting most international markets since 2019, focusing instead on its core operations in Brazil, Germany, Spain and the UK. Telefonica’s chairman, Marc Murtra, previously noted that the company’s exit from Latin America, improves its position to undertake consolidation operations in the telecommunications sector in Europe, where three of its four main markets are concentrated.
Millicom, which operates under the Tigo brand, has also simplified its geographic footprint in recent years. The company exited several markets in Asia and Africa to concentrate on Latin America and has expanded its regional presence through acquisitions. These include Telefónica’s operations in Ecuador and Uruguay, which Millicom acquired in 2025.
In March last year, Telefónica had also finalized an agreement to sell 67.5% of its Colombian unit Coltel— which it operates under the Movistar brand — to Millicom for approximately approximately $416 million. In addition to acquiring Telefonica’s stake, Millicom had 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.
Telefonica Chile has previously drawn interest from other regional players, including Entel and América Móvil. Media reports had suggested the possibility of a joint bid, though those discussions did not progress.
An acquisition by Millicom would maintain Chile’s four-operator mobile market structure, a factor that has historically reduced regulatory concerns. Regulatory data cited by Bloomberg shows Telefónica’s Movistar brand is Chile’s second-largest mobile operator, with a 22.6% market share, behind market leader Entel. The other two carriers are Claro and Wom.
