MercoPress. South Atlantic News Agency

Telefónica sells Movistar Uruguay to Millicom

The move was a part of Telefónica's large-scale departure from Latin America

The Spanish company Telefónica, through its subsidiary Telefónica Hispanoamérica, sold its Movistar Uruguay business to Millicom, a Luxembourg-based company operating under the Tigo brand, as part of its strategy to reduce its presence in Latin America. The transaction, announced to the Spanish National Securities Market Commission (CNMV), is now subject to regulatory approvals. It is also a part of Telefónica's asset divestment plan, following sales in Argentina, Colombia, and Peru in 2024, totaling over US$2 billion.

Millicom’s CEO, Marcelo Benitez, emphasized Uruguay's strong economic fundamentals and digital agenda, noting the acquisition enhances their Latin American platform through operational synergies and market stability. “This acquisition represents a key milestone in our strategy of purposeful growth in Latin America - especially in Uruguay, a country with strong economic fundamentals and a forward-looking digital agenda,” he pointed out.

Movistar Uruguay, a profitable mobile operator with national coverage, strengthens Millicom’s presence in the region, alongside operations in Paraguay and Bolivia, with a focus on digital inclusion and infrastructure investment. Tigo also offers telecommunications services such as mobile telephony, internet, cable TV, and corporate services in Africa.

The buyer highlighted its commitment to “being a long-term partner in Uruguay's digital development” through investments in mobile infrastructure, service enhancement, and innovation. It also highlighted operational synergies with its operations in Paraguay and Bolivia, and the strengthening of its digital ecosystem.

Telefónica accelerated its strategic withdrawal from Latin America in 2024. In March, it sold 67.5% of Colombia Telecomunicaciones (Coltel) to Millicom for 368 million euros. Previously, in February, it sold its Argentine subsidiary to Argentina Telecom for 1.245 billion euros. In April, it completed the sale of its Peruvian business to Integra Tec International.

According to Millicom, the new deal will generate immediate benefits in scale and synergies, boosting its Latin American platform, given Uruguay's stable macroeconomic environment and credit rating.